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A company is trying to decide between two machines that are necessary in its manufacturing facility....

A company is trying to decide between two machines that are necessary in its manufacturing facility. If management has minimum attractive rate of return (MARR) of 15%, which of the following machine should be chosen? Use annual cash flow analysis method

Machine A Machine B
First cost $45,000 $24,000
Annual Cost $31,000 $35,000
Overhaul in Year 4 $3,000 $5,000
Salvage Value 0 0
Useful Life 8 years 6 years
Business   Accounting   
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