Question 21 (Mandatory) (4 points) You mistakenly hired an IU grad to maintain an important machine. Now you need to replace the badly broken equipment and you must decide between two new machines. Machine A has a purchase cost of $30,000, an annual operating cost of $25,000, and a service life of 4 years. Machine B will cost $61,000 to buy and have an annual operating cost of $17.500 during its 4-year life. Using Present Worth analysis (and after firing the IU grad), which machine would you buy at an interest rate of 10%% per year? OA. Select Machine A with a calculated PW of $-109,248. )B. Select Machine B with a calculated PW of $-104,888. OC. Select Machine A with a calculated PW of $-104,888. OD. Select Machine B with a calculated PW of $-116,473. OE. Select either Machine because they are economically equivalent at i = 10% per year. OF. Select Machine B, but all of the PW amounts calculated above are incorrect. Question 22 (Mandatory) (4 points) An underground water line was broken by an overly-frustrated UK football fan driving his 4-wheel drive monster truck off road in a restricted area. Purdue engineers have been called in to fix the problem while Wildcat Willie sits in jail. A 250 mm water line will have an initial cost of $155,000. A 300 mm line will cost $210,000. The pumping cost for the 250 mm line is expected to incur additional pumping costs of $3,000 per year. With Willie now in prison, either line is expected to last 30 years. Using Present Worth analysis, which line should be selected using an interest rate of 10% per year? There is not enough information presented to complete the problem Install either line because they are economically equivalent at i = 10% per year Install the 300 mm line because it costs less in PW terms O Install the 250 mm line because it costs less in PW termsQuestion 21 (Mandatory) (4 points) You mistakenly hired an IU grad to maintain an important machine. Now you need to replace the badly broken equipment and you must decide between two new machines. Machine A has a purchase cost of $30,000, an annual operating cost of $25,000, and a service life of 4 years. Machine B will cost $61,000 to buy and have an annual operating cost of $17.500 during its 4-year life. Using Present Worth analysis (and after firing the IU grad), which machine would you buy at an interest rate of 10%% per year? OA. Select Machine A with a calculated PW of $-109,248. )B. Select Machine B with a calculated PW of $-104,888. OC. Select Machine A with a calculated PW of $-104,888. OD. Select Machine B with a calculated PW of $-116,473. OE. Select either Machine because they are economically equivalent at i = 10% per year. OF. Select Machine B, but all of the PW amounts calculated above are incorrect. Question 22 (Mandatory) (4 points) An underground water line was broken by an overly-frustrated UK football fan driving his 4-wheel drive monster truck off road in a restricted area. Purdue engineers have been called in to fix the problem while Wildcat Willie sits in jail. A 250 mm water line will have an initial cost of $155,000. A 300 mm line will cost $210,000. The pumping cost for the 250 mm line is expected to incur additional pumping costs of $3,000 per year. With Willie now in prison, either line is expected to last 30 years. Using Present Worth analysis, which line should be selected using an interest rate of 10% per year? There is not enough information presented to complete the problem Install either line because they are economically equivalent at i = 10% per year Install the 300 mm line because it costs less in PW terms O Install the 250 mm line because it costs less in PW terms