Question: 26 Company UVW has to make a choice between two identical machines 'A' and 'B'. They have been designed differently, but do exactly the same job. Machine 'A' costs 7,50,000 and will last for three years, it costs * 2,00,000 per year to run. Machine 'B' is an economy model costing only 5,00,000, but will last for only two years. It costs 3,00,000 per year to run. Ignore taxes. The opportunity cost of capital is 9%. You are required which machine the company UVW should buy? Ignore depreciation.