Solve by PW method.

[30 marks] Three machines are considered for the upgrade of biodiesel production. The information associated with each machine is shown in the table below. The company-wide MARR is 10% per year. Machine X Y Z Investment cost $29.000 $32.000 $35,000 Net annual revenue $10.500 $12.000 $13,500 Market value at the end $6.900 $6.000 $5.000 Useful life in years 6 8 9 IRR 12% 15% 8% a. [15 marks] Determine which machine should be selected if the repeatability assumption holds (If you student ID number is even. use the PW method. Otherwise. use the FW method). b. [15 marks] Determine which machine should be selected if the repeatability assumption does not hold and a study period of 8 years is used. Assume that the equivalent worth for any machine, having a useful life less than 8 years, at the end of its own life will be reinvested at the MARR for the remainder of the study period (If you student ID number is even. use the PW method. Otherwise. use the FW method)