Situation:

The annual cost of a certain machine was determined to be P$1,800.$ The following alternatives is being considered for a lifetime business. Interest rate is $8\%.$

Machine A:

First Cost $=5,000$

Annual Maintenance Cost $=500$

Economic Life $($years$)=5$

Salvage Value $=600$

Machine B:

First Cost $=10,000$

Annual Maintenance Cost $=200$

Economic Life $($years$)=10$

Salvage Value $=1,000$

a$)$ Determine the equivalent uniform annual cost of Machine A$.($Answer: $1,650)$

b$)$ Determine the equivalent capitalized cost of Machine B$.($Answer: $20,266)$