Question: A dentist is deciding between two X-ray machines for his new office.Estimated costs for each machine are given below. Use an inflation-free MARR of 14%,

A dentist is deciding between two X-ray machines for his new office.Estimated costs for each machine are given below. Use an inflation-free MARR of 14%, an inflation rate of 6.5% per year, and a study period of 10 years.

a) What is the annual worth for Machine A?

b) What is the annual worth for Machine B?

c) Which machine should be recommended based on the annual worth method and an actual-dollar analysis?

Machine	A	B
Installed cost	$50,000	$52,000
Annual maintenance cost	$1500	$1200
Market value at year 10	$5750	$6250
Life, years	10	10

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