You are evaluating 2 machines the investment of 2 mutually exclusive machines. Each machine has aneight year life and you plan to keep whichever machine you pick for the full 8 years.The firm's MARR is 10%. The cash flows for each machine are summarized in the following table:

ABInitial Cost$4000$3000Annual Benefit$800$600Annual Cost$100$50Salvage Value$1500$1000

Each investment has an IRR greater than the 10% MARR.Using Incremental Replacement Analysis, which investment should be chosen and why (show calculations in answer or in written submission)?