A company that manufactures amplified pressure transducers wishes to decide between the machines shown€”variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 15% per year.

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VS DS First cost, $ -225,000 -250,000 AOC, $ per year Overhaul in year 3, $ Overhaul in year 4, $ -231,000 -235,000 -26,000 -39,000 Salvage value, $ Life, years 50,000 10,000 6.