Technology Innovations is planning to purchase one of two chip insertion machines. Due to the pace of technological change in this area, it is realistic to assume that these are one-shot investments. The expected cash flows for each machine are shown below. MARR is 8 percent/year. Based on a present worth analysis, which machine is preferred?

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Initial Investment E Series $40,000 M Series $60,000 Estimated Life 7 5 End of Life Salvage $10,000 $0 Annual Income $19,400 $26,000 Annual Expense $10,000 $6,000