Suppose you need to choose between two machines. The first one will cost $80,000, will have an

economic life of 4 years and zero salvage. Annual maintenance costs would be $10,000. The

other alternative would cost $130,000, would have an economic life of 6 years, and a 90,000

salvage value. The annual maintenance would cost $11,000. Both alternatives would have a

CCA rate of 30%. The cost savings are expected to be the same. Which machine should be

chosen (assume a discount rate of 14% and a tax rate of 35%)?