A company has to decide between two machines that do the same job but have different lives. Which machine should the company buy, at an interest ra of $10\%,$ based on the principle of internal rate of return? Assume a financing rate of $8\%.$ Assume that required service period is indefinite and both projects can be repeated at the same cost in the future.

Click the icon to view the cash flows for the projects.

Click the icon to view the interest factors for discrete compounding when $i=8\%$ per year.

Click the icon to view the interest factors for discrete compounding when $i=10\%$ per year.

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Compute the inte

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A$.$ Incremen

B$.$ Incremen

Net Cash Flow

$\backslash$table$[[$Net Cash Flow$],[$Machine A$,$Machine B$],[-$$$40,000,-$$$55,000$