For project X, the working capital items in year 4 and year 5 are as follows: Year 4: inventories =$65,000; accounts receivable =$110,000; accounts payable = $58,000 Year 5: inventories =$68,000; accounts receivable =$105,000; accounts payable = $61,000. Calculate the increase or decrease in working capital for year 5. Decreases by $7,000 increases by $1,000 Decreases by $5,000 increases by $3,000 Two machines, A and B, which perform the same functions, have the following costs and lives. Machine A: PV of costs =$55,000; Life of usage =8 years. Machine B: PV of costs =$72,000; Life of usage =11 years. The two machines are mutually exclusive and the cost of capital is 12 percent. Which machine would you choose? Machine A, because the Equivalent Annual Cost is $6,545.46 Machine B, because the Equivalent Animinal Cost is $11,071.66 Machine A, because the Equivalent Annual Cost is $11,071.66 Machine B, because the Equivalent Annual Cost is $12,125.91