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please answer the question fully and clearly. You need to choose between two machines based on the following information: Machine 1 has a 4 year
please answer the question fully and clearly.
You need to choose between two machines based on the following information: Machine 1 has a 4 year life, costs 8922,500 with pre-tax operating costs of $64,500 per year. Machine 2 has a 3 year life, costs 4425,250 with pre-tax cperating costs of (39,600 per year. Both machines have a salvage value of 22,500 and are classed with a CCA rate of 18% per year. The company tax rate is 30% and the discount rate is 10%. a) What is the EAC? b) Which machine would you select as an investment? Answer Place onlyyour finalenswer in the box. b) Which Machine? Show your work here (mandator): You need to choose between two machines based on the following information: Machine 1 has a 4 year life, costs 8922,500 with pre-tax operating costs of $64,500 per year. Machine 2 has a 3 year life, costs 4425,250 with pre-tax cperating costs of (39,600 per year. Both machines have a salvage value of 22,500 and are classed with a CCA rate of 18% per year. The company tax rate is 30% and the discount rate is 10%. a) What is the EAC? b) Which machine would you select as an investment? Answer Place onlyyour finalenswer in the box. b) Which Machine? Show your work here (mandator) Step by Step Solution
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