Your have been asked to evaluate two machines. The life cycle of each machine is 4 years and the interest rate is 3%. Assume all costs occur at the end of each year. Salvage value is received at the end of the life cycle. One labour hour is expected to cost $12 in year 1 and 2. Cost of labour will increase by 25% in year 3 and 4 (from year 1 and 2). Category Original Cost Direct labour hours per year Electricity per year Maintenance labour hours per year Salvage Value Machine A $250,000 3,500 $43,500 180 $90,000 Machine B $380,000 1,800 $18,000 160 $100,000 Determine via the present value method which machine to purchase. Show all calculations you are using to reach a conclusion. Your have been asked to evaluate two machines. The life cycle of each machine is 4 years and the interest rate is 3%. Assume all costs occur at the end of each year. Salvage value is received at the end of the life cycle. One labour hour is expected to cost $12 in year 1 and 2. Cost of labour will increase by 25% in year 3 and 4 (from year 1 and 2). Category Original Cost Direct labour hours per year Electricity per year Maintenance labour hours per year Salvage Value Machine A $250,000 3,500 $43,500 180 $90,000 Machine B $380,000 1,800 $18,000 160 $100,000 Determine via the present value method which machine to purchase. Show all calculations you are using to reach a conclusion. Your have been asked to evaluate two machines. The life cycle of each machine is 4 years and the interest rate is 3%. Assume all costs occur at the end of each year. Salvage value is received at the end of the life cycle. One labour hour is expected to cost $12 in year 1 and 2. Cost of labour will increase by 25% in year 3 and 4 (from year 1 and 2). Category Original Cost Direct labour hours per year Electricity per year Maintenance labour hours per year Salvage Value Machine A $250,000 3,500 $43,500 180 $90,000 Machine B $380,000 1,800 $18,000 160 $100,000 Determine via the present value method which machine to purchase. Show all calculations you are using to reach a conclusion.