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HCT Dubai men's College is looking to replace its old CNC machine; they have received two proposals fhom DMG Moni Japn. The detalhl are as

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HCT Dubai men's College is looking to replace its old CNC machine; they have received two proposals fhom DMG Moni Japn. The detalhl are as folos Alternate 1: Lease Lease the machine at an annual rental of 50,000 AED. The five payments are to be paid at the beginning of each year. The rental cost wl include all maintenance on the machine. The machine end of the previous year and draw a cash flow diagram) Alternate 2: Buy the machine The cost of the new machine is 200,000 AED. HCT will be responsible for the maintenance of the CNC machine, which is estimated at 18,000 AED per year. The machine will last five years and will have a salvage value of 75,000 AED. HCT uses 8% as a rate or return. Calculate using the given data, and answer the foloowing questions. a. The Present worth of Lease is a] b. The Present worth of maintenance for 5 years if machine is bought is [bl c. Present worth of salvage value of CNC machine is [c] d. Total present worth of Buy [d] e. The best selection based on the Present Worth is lel

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