Two machines, each with a service life of 5yr, have the following cost comparison. If the effective interest rate is 10%//yr, which machine is more economical?

17.10 Two machines, each with a service life of 5 yr, have the fol lowing cost comparison. If the effective interest rate is 10%/yr, which machine is more economical? $25,000 2,000 $15,000 4,000 First cost Uniform end of-year maintenance Overhaul, end of third year Salvage value Benefit from quality as a uniform 3,500 3,000 500 end-of-year amount