Q3 UTeM is planning to install new blow molding machine. Two different blow molding are available. The cost estimation and annual expenses are shown in table 1. In addition, the component in machine A have to be replace every 2 years with cost, RM 5,000. Assume that each machine has the same output capacity (250,000 units per year) and expected to earn at least 10% per year with 6 years useful life. Both machines able to produce 250,000 units per year without defect and all units can be sold with selling price RM 1.20 per unit. Table 1: Machine cost information Machine Machine A B 150,000 200,000 First cost, RM Annual Maintenance Cost, RM per year 30,000 start 12,000 start at year 2 and increase 1,000 every year at year 3 Salvage value, RM 40,000 50,000 Recommend to the company whether to purchase machine A or machine B