The manager of a canned-food processing plant has two mutually exclusive labeling machine options. On the basis of a rate of return analysis with a MARR of 9% per year, determine which model is economically better Model X Y

First cost, $ -50,000 -90,000

AOC, $ per year -6,000 -4,000

Salvage value, $ 10,000 15,000

Life, years 5 10