1. You are requested to provide recommendation to acquire one of the two production packaging equipment with the following comparative data:

Details	Machine 1	Machine 2
Initial Investment	$ 100,000	$ 80,000
Annual Revenue	$ 40,000	$ 36,000
Annual Cost	$ 20,000	$ 18,500
Salvage value	$ 8,000	$ 6,000
Life, years	7	7

This is an asset class with a 5 year depreciation recovery period on the MACRS table. Assume effective tax rate of 40%, and an after tax MARR of 8%. Perform after tax PW analysis on spreadsheet to make your recommendation.