Your construction firm is trying to decide whether to buy a New or Reconditioned excavator, and your project manager assigns you the task of performing the economic analysis. You have worked with the vendors to develop the best available pricing information on each machine, as shown in the table below. Assume all other factors that might influence your decision are equal. Your firm's Chief Financial Officer (CFO) asks that an annual rate of 5% be used in your analysis.

Parameter	Machine A: New	Machine B: Reconditioned
Purchase Price	$150,000	$115,000
Useful Service Life	10 years	10 years
End of Life Salvage Value	$25,000	$10,000
Annual Operating Cost	$3,600	$5,000

Instructions:

On a separate piece of paper, neatly draw a Cash Flow Diagram for each option (2 diagrams total). Label all the components of the diagrams.

Determine the Equivalent Uniform Annual Costs for Machine A (New), including the Salvage value.

Be sure to clearly show all your calculations on your uploaded document to get full credit on this question, and identify your answer. Enter your final answer below, do not enter the dollar sign, and you can round your answer to the closest dollar.