Great Enterprises is analyzing two machines to determine which one they should purchase. The company requires a 13 percent rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of $285,000, annual operating costs of $8,500, and a 3-year life. Machine B costs $210,000, has annual operating costs of $14,000, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. Great Enterprises should select machine _____ because it will save the company about _____ a year in costs.

		A; $10,688
		A; $ 17,716
		B; $5,500
		B; $14,987
		B; $16,204