Q1: GAMA Co. wants to renew the production machine that included artificial intelligence because the company is aware of this era is digital era and if the company wants to continue its existence in a competitive environment, it should follow closely the technological developments. So that, the company have search new production machine alternatives. There are two alternatives: The cost of Alfa is $48.000 Alternative 1: The economic life of Alfa is 6 years Alfa If the company purchase Alfa, the annual total fixed cost will be Production $11.050; but this cost doesn't contain the deprecation cost of Machine the Alfa If the company purchase Alfa, the unit variable cost will be $5/units If the company purchase Alfa, the machine will provide cash flow of $15.000 every year for its economic life The cost of Beta is $60.000 Alternative 2: The economic life of Beta is 6 years Beta If the company purchase Beta, the annual total fixed cost will Production be $12.836; but this cost doesn't contain the deprecition cost of Machine the Beta If the company purchase Beta, the unit variable cost will be $3/units If the company purchase Beta, the machine will provide cash flow of $20.000 every year for its economic life The existing situation, the company has 3.000 units production volume. The company estimates the new machines (Alfa or Beta), don't cause any change in production capacity and sales volume, but provide cost savings. REQURED: According to the unit selling price is $15/units, company's depreciation method is "Straight Line Method" and the minimum expected return for its investments is 20%. Ascertain the profit function and break-even point for both Alfa and Beta and considering CVP Analysis and NPV of each machine, decide which and why machine can be purchased