QUESTION 14 A firm is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine, Machine A has a cost of $810,000, annual operating costs of $54,000, and a 8-year life. Machine B costs $420,000, has annual operating costs of $92,000, and a 5-year life. The firm currently pays no taxes. Which machine should be purchased and why? Machine A; because it will save the company about $7,812 a year O Machine A; because it will save the company about $9,367 a year O Machine B; because it will save the company about $10,610 a year Machine B; because it will save the company about $8,543 a year Machine B; because it will save the company about $5,807 a year QUESTION 15 Jabil is a young firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual dividend in the amount of $4.10 per share. What is the current value of one share if the required rate of return is 13%? O $76.19 $74.86 $68,57 $70.92 $65.37