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You have been hired by M&M/Mars after graduating from lowa State. Your task is to replace an old M&Ms bagging machine with a new one.

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You have been hired by M&M/Mars after graduating from lowa State. Your task is to replace an old M&Ms bagging machine with a new one. You are considering two competing manufacturers which make similar machines with similar efficiencies. The company policy is a Minimum Attractive Rate of Return (MARR) is 8%. Here are some additional details about the competing machines Capital Cost Estimated service life Salvage value Annual maintenance What is the equiavalent uniform annual cost to purchase and operate Machine A $6000 7 years $0 Machine B $12,000 13 years S4000 Machine B? $4562 $5526 O $3142 O $1507

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