Franks Manufacturing is evaluating two machines (mutually exclusive) to decide which one it should purchase. Machine A has a cost of $386,000, annual operating costs of $29.000, and a life of four years. Machine B costs $257,000, has annual operating costs of $19,000, and a life of 3 years. Whichever machine is purchased, it will be replaced at the end of its useful life. The company requires a return of 15 percent and uses straight-line depreciation to a zero book value over the life of the machine. The firm currently pays no taxes. Which machine should be purchased and why? Multiple Choice Machine because it will save the company about $10,000 a year Machine A because it will save the company about $32,642 a year O Machine A because it will save the company about $19.261 a year O Machine B because it will save the company about $32,642 a year Marhino R herance It will eve tha mnanwahar19 761 a voar