Please first calculate the effective rate, then for each alternative determine the variable costs and add a cash flow diagram.

A company is interested in purchasing a new CNC metalworking lathe to enable programmatic turning operations. Option 1 costs $123000, has a life of 10 years, an annual cost of $5000, a salvage value of $5000, and requires one machinist at a cost of $24 per hour. Option 2 costs $70000, has a life of 6 years, an annual cost of $2500, a salvage value of $10000, and requires two machinists at a cost of $24 per hour each. Options A and B can process 10 and 6 tons of material per hour, respectively, and it is anticipated that the machinists would work 2080 hours per year. If the minimum attractive rate of return is 6.785% per year, compounded monthly, how many tons of material must be processed per year to justify the purchase of (a) Option 1? How many tons of material must be processed per year to justify the purchase of (b) Option 2? A company is interested in purchasing a new CNC metalworking lathe to enable programmatic turning operations. Option 1 costs $123000, has a life of 10 years, an annual cost of $5000, a salvage value of $5000, and requires one machinist at a cost of $24 per hour. Option 2 costs $70000, has a life of 6 years, an annual cost of $2500, a salvage value of $10000, and requires two machinists at a cost of $24 per hour each. Options A and B can process 10 and 6 tons of material per hour, respectively, and it is anticipated that the machinists would work 2080 hours per year. If the minimum attractive rate of return is 6.785% per year, compounded monthly, how many tons of material must be processed per year to justify the purchase of (a) Option 1? How many tons of material must be processed per year to justify the purchase of (b) Option 2