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sims industries, Inc. is considering two machines to replace an old machine. Machine A has life of 10 years, will cost $24,500, and will produce

sims industries, Inc. is considering two machines to replace an old machine. Machine A has life of 10 years, will cost $24,500, and will produce net cash savings of $4,800 per year. Machine B has an expected life of 5 years, will cost $20,000, and will produce net cash savings in operating costs of $6,000 per year. The company's cost of capital is 14 percent. Compare the 2 and make a choice.

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