Your company needs a machine for the next 20 years. You are considering two different machines.
Machine A
Installation cost ($): 1,000,000
Annual O&M costs ($): 99,000
Service life (years): 20
Salvage value ($): 62,000
Annual income taxes ($): 46,000
Machine B
Installation cost ($): 0,500,000
Annual O&M costs ($): 99,000
Service life (years): 10
Salvage value ($): 54,000
Annual income taxes ($): 39,000
If your company s MARR is 18%, determine which machine you should buy. Assume that machine B will be available in the future at the same costs. Enter the Annual Equivalent Cost as a positive number of the preferred machine.?