Please offer procedures.

Problem 2 An engineer is trying to decide which of two machines he should purchase. He obtains estimates from two salesmen, but salesman A gives him the expected costs in fixed value dollars (today's dollars) and salesman B in then-current dollars. If the company's MARR is 10% and the inflation rate is expected to be 5% per year, what salesman's product should he purchase? Use PW analysis. Salesman A (today's dollars) Salesman B (future dollars) First Cost $40,000 $80,000 AOC $10,000 $15,000 Life (Years) $ 10 Based on your analysis, answer questions 5 through 7. ifi+f+i*f = .1+.05+.1*.05 = 15.5% PW (A) = -40,000-10000(P/A,10%,10)-40000(P/F,10%,5) = -126,282.52 AW(A) = -$20,551.90 (Today's dollars), AW(A) = - $25,643.31 (Future Dollars) PW(B) = -80,000-15,000(P/A,15.5%, 10) = -153,868.70 AW(B) = -$25,041.42 (Today's dollars), AW(B) = -$31,245.04 (Future Dollars) What is the present value of the cash flow in year 9 of the machine sold by Salesman B = 15000(P/F,.155,9)=-$4,100.65 What is the annual Worth of the machine sold by Salesman A = -20,551.90 What is the annual Worth of the machine sold by Salesman B = -$25,041.42 Problem 2 An engineer is trying to decide which of two machines he should purchase. He obtains estimates from two salesmen, but salesman A gives him the expected costs in fixed value dollars (today's dollars) and salesman B in then-current dollars. If the company's MARR is 10% and the inflation rate is expected to be 5% per year, what salesman's product should he purchase? Use PW analysis. Salesman A (today's dollars) Salesman B (future dollars) First Cost $40,000 $80,000 AOC $10,000 $15,000 Life (Years) $ 10 Based on your analysis, answer questions 5 through 7. ifi+f+i*f = .1+.05+.1*.05 = 15.5% PW (A) = -40,000-10000(P/A,10%,10)-40000(P/F,10%,5) = -126,282.52 AW(A) = -$20,551.90 (Today's dollars), AW(A) = - $25,643.31 (Future Dollars) PW(B) = -80,000-15,000(P/A,15.5%, 10) = -153,868.70 AW(B) = -$25,041.42 (Today's dollars), AW(B) = -$31,245.04 (Future Dollars) What is the present value of the cash flow in year 9 of the machine sold by Salesman B = 15000(P/F,.155,9)=-$4,100.65 What is the annual Worth of the machine sold by Salesman A = -20,551.90 What is the annual Worth of the machine sold by Salesman B = -$25,041.42