Using before tax cash flow analysis, prepare an exhibit that shows the range of annual volume over which each machine is the least costly option given the data below. Use an interest rate of 16.0%. All options are expected to be in use for a long period of time.

Option	1	2	3	4
Purchase	120,000	105,000	95,000	65,000
Salvage	14,000	5,000	2,000	1,000
Life (yrs)	12	10	8	5
Annual Maintenance Cost	25,000	24,500	26,000	20,000
Unit Costs	22.50	25.50	26.00	32.50

a. What is the total fixed annual cost of option 2?

b. What is the maximum volume that option 4 is the lowest cost?