Question 5. A company wishes to undergo one of two projects. Project A requires an initial investment of $50,000 in a machine with a service life of 5 years. The annual operation and maintenance cost is $2000, and the revenue generated is $12,000 per year. The salvage value of the machine is $30,000. Project B requires an initial investment of $20,000 in a machine with a service life of 6 years. The annual operation and maintenance cost is $1000, and the revenue generated is $5000 per year. The salvage value of the machine is $10,000. For financing the initial investment of either project, the company will borrow a quarter of the required amount from a bank at an interest rate of 1% per month, compounded monthly and the other three quarters will come from a savings account that 3 earns an effective interest rate of 6% per year. The minimum attractive rate of return (MARR) is set by the company as 2% above the weighted average cost of capital (WACC). Select the more economical project. the weighted-average cost of capital (WACC). Selec Question 5. A company wishes to undergo one of two projects. Project A requires an initial investment of $50,000 in a machine with a service life of 5 years. The annual operation and maintenance cost is $2000, and the revenue generated is $12,000 per year. The salvage value of the machine is $30,000. Project B requires an initial investment of $20,000 in a machine with a service life of 6 years. The annual operation and maintenance cost is $1000, and the revenue generated is $5000 per year. The salvage value of the machine is $10,000. For financing the initial investment of either project, the company will borrow a quarter of the required amount from a bank at an interest rate of 1% per month, compounded monthly and the other three quarters will come from a savings account that 3 earns an effective interest rate of 6% per year. The minimum attractive rate of return (MARR) is set by the company as 2% above the weighted average cost of capital (WACC). Select the more economical project. the weighted-average cost of capital (WACC). Selec