- You are considering two different stirring machines for your goat cheese factory. Both meet your performance requirements but differ as tabled below. If you anticipate remaining in business for at least 15 years, and your discount rate is 3%, which machine should you select? Assume no taxes. Machine A Machine B Acquisition cost $40,000 $65,000 Yearly operating cost $10,000 $9,000 Useful Life 3 years 5 years . You are looking to buy a Porsche Boxster sports car costing $93,000. One dealer is offering a special reduced financing rate of 2.5% APR on new car purchases for five-year loans with monthly payments. A second dealer is offering a cash rebate. However any customer taking the cash rebate would be ineligible for the special loan rate and would have to borrow the balance of the purchase price from the local bank at the current 4.5% APR. How large must the cash rebate be on this $93,000 car to entice a customer away from the dealer who is offering the special 2.5% financing