Question: 5. Using before tax cash flow analysis, determine the annual crossover volume between 2 machines given the data below. Use an interest rate of 11.5%.

5. Using before tax cash flow analysis, determine the annual crossover

5. Using before tax cash flow analysis, determine the annual crossover volume between 2 machines given the data below. Use an interest rate of 11.5%. Life of both is 8 years.- Option A Purchase 90,000 110,000 Salvage 7,000 9,000 Annual Maintenance Cost 6,000 5,400 Unit Costs 35.50 28.90 a. What is the maximum annual volume that option A has the lowest cost ? b. What is the best total cost at an annual volume of 4500 units per year

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