10. (Copy machines @) Two copy machines are available. Both have useful lives of 5 years. One machine can be either leased or purchased outright; the other must be purchased. Hence there are a total of three options: A, B, and C. The details are shown in Table 2.5. (The first year's maintenance is included in the initial cost. There are then four additional maintenance payments, occurring at the beginning of each year, followed by revenues from resale.) The present values of the expenses of these three options using a 10% interest rate are also indicated in the table. According to a present value analysis, the machine of least cost, as measured by the present value, should be selected; that is, option B. TABLE 2.5 COPY MACHINE OPTIONS Option A B C Initial outlay 6,000 30,000 35,000 Yearly expense 8,000 2,000 1,600 Resale value 0 10,000 12,000 Present value (@ 10%) 31,359 30, 131 32,621 Option A is a lease; options B and C are purchases of two alternative machines. All have 5-year lives