Question: 12. You can continue to use your less efficient machine with a maintenance cost of $7,191 annually for the next five years (with zero initial

 12. You can continue to use your less efficient machine with

12. You can continue to use your less efficient machine with a maintenance cost of $7,191 annually for the next five years (with zero initial cost). Alternatively, you can purchase a more efficient machine for $12,000 today, plus $5,000 annual maintenance that last for the next 10 years. The cost of capital is 15%, then you should: (assume both machines are repeatable) A. Keep the old machine and save $200 in equivalent annual costs. B. Keep the old machine and save $388 in equivalent annual costs. C. Keep the old machine and save $1,195 in equivalent annual costs. D. Buy the new machine and save $109 in equivalent annual costs. E. Buy the new machine and save$389 in equivalent annual cost

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