Taxation and Depreciation. (10%) Two machines are to be analyzed for a certain manufacturing task. One of these two MUST be purchased. The salvage value for both machines is zero at the end of an estimated life of 4 years. The sum-of-the-years'-digits depreciation method used in "determining 4 year depreciation charges. The after-tax marginal cost of capital is 11 percent. The income tax rate for this company is 40 percent. Do NOT apply half year rule for this case and round your calculation to integers. Use the present worth method for your solution. The cash flows ($) are as follows: Year 0 Machine A ($) Machine B ($) -1600 -1800 1 +900 +1000 2 +900 +1000 3 +900 +1000 4 +900 +1000 (a) Which machine should be purchased? [5 marks] (b) Is your decision changed by using the declining balance method, where the declining rate is 66.67%? (Dollar value: integer) [5 marks]