A company must decide whether to buy machine a or machine

Question

A company must decide whether to buy Machine A or Machine B.

A                    B

First cost                               $9,000             $17,000

Annual maintenance             $1,000                  $450

Salvage value                       $4,000               $9,000

Useful life, in years                    4                        10

(a) What is the equivalent uniform annual cost (EUAC) of Machine A?

(b)What is the equivalent uniform annual cost (EUAC) of Machine B?

(c)Which machine should one choose?