Question 2: (20%) A company is considering buying a new machine for its factory. The following table shows the first cost and operating expenses for two machines A and B. It shows as well the salvage value that corresponds to each useful life. The service lives of machines A and B are 4 and 3 years, respectively. The annual revenues of machine A are expected to be $45,000 increasing by 25% each year thereafter. While the annual revenues of machine B are expected to be $40,000 increasing by 20% each year thereafter. Machine A Machine B N Cash Flow Salvage Value Cash Flow Salvage Value 0 -$100.000 -$80.000 -$25.000 $85,000 -$21.000 $72,000 2 -$25.000 $75,000 -$21,000 $65,000 3 -$25.000 $63,000 -$21,000 $60,000 4 -$25.000 $55,000 (a) Using an appropriate RR analysis, which project is a better choice? (b) Using an appropriate RR analysis and a case study of 7 years, which project is a better choice