Subject: Engineering Economics

Need Step by step solution within 30 minutes.

Question #3: You have the choice of two machines, A and B. Machine A costs $40,000 with a salvage value of $10,000 and will last 6 years. Machine B costs $36,000 with a salvage value of $8,000 and will last you 5 years. You need the machine for a total of 30 years. Which machine is a better investment for your company if i = 12% for both machines? Assume consistent repurchasing costs