Y5

1. (30 points) Two machine options as given in the table Machine A Machine B First Cost $65000 $83500 Service life 8 years 10 years Salvage Value $5000 $8000 Annual O&M costs $7500 $5800 If MARR is 10% (a) Which machine is preferable? (b) Determine the break-even annual O&M costs for machine A so that two machines have no difference economically. Resolve problem using Solver