Old Southwest Canning Co. has determined that any one of four machines can be used in its chili-canning operation. The cost of the machines are estimated below, and all machines have a 5-year life. If the minimum attractive rate of return is 25% per year, determine which machine should be selected on the basis of a rate of return analysis.

Machine	First Cost, $	AOC, $
1	?28,000	?20,000
2	?51,000	?12,000
3	?32,000	?19,000
4	?33,000	?18,000

Machine 4 2 1 3 should be selected?