Montreal Construction needs to replace one of their heavy machines. They are considering buying either Mach X or Mach Y, which have the following data: Data Mach X Mach Y Life, Years 6 4 First Cost (FC) $210,000 $150,000 Annual Benefit (AB) 90,000 87,000 increasing annually by 1,200 1,100 Annual Maintenance & Operating Cost (M&O) 18,000 17,000 increasing annually by ,000 900 Salvage Value 120,000 92,000 The Accounting Department of Montreal Construction reveals that a loan must be secured to purchase any machine. The loan data are as follows: Data Mach X Mach Y Down Payment (% of FC) 16% 20% Loan Period, Years 6 4 Annual Loan Payment $46,611 $42,032 The loan payments will be made annually and the bank charged 15% interest. Montreal Construction assumes MARR = 12%. The analysis period, if you are going to do a Present Worth analysis, is close to: O 4 years O 6 years O 10 years 12 years 0 24 years O SKIP For Present or Annual Worth analyses you should use an interest rate of: 10% 12% 15% O 16% 20% SKIP The Annual Worth for Mach X is close to: $28,684 $29,904 $30,544 O $32,437 $33,940 O SKIP The Annual Worth for Mach Y is close to: O $35,904 $36,840 $37,611 $38,732 $40,684 O SKIP Recommend which machine to purchase: O Mach x O Mach Y more negotiation with the vendor needed O None O X and Y are equally preferred O SKIP