A small manufacturing firm is considering purchasing a new machine to modernize one of its current production lines. Two types of machines are available on the market. The lives of machine A and machine B are four years and six years, respectively, but the firm does not expect to need the service of either machine for more than five years. The machines have the expected receipts and disbursements given in the table below. The firm also has another option: leasing a machine at $3,000 per year, which is fully maintained by the leasing company. After four years of use, the salvage value for machine B will remain at $1,000. Since we do not know the salvage values of the machines after one-year use, consider the following alternatives. Alternative 1. Buy Machine A and use it for 4 years. Then lease a machine for one year. Note that you should change the oil filter before leasing the machine.Alternative 2. Buy Machine B and use it for 5 years.Alternative 3. Lease a machine for 5 years.Which decision appears to be the best at i=10%. Assume that the lease payment is in the beginning of a year.Click the icon to view the expected receipts and disbursements for machines.The equivalent annual cost for alternative 1 over a 5-year period is $.(Round to the nearest dollar.)\table[[Item,Machine A,Machine B],[First cost,$6,500,$8,500],[Service life,4 years,6 years],[Estimated salvage value,$600,$1,000],[Annual OA small manufacturing firm is considering purchasing a new machine to modernize one of its current production lines. Two types of machines are available on the market. The lives of machine A and machine B are four years and six years, respectively, but the firm does not expect to need the service of either machine for more than five years. The machines have the expected receipts and disbursements given in the table below. The firm also has another option: leasing a machine at $3,000 per year, which is fully maintained by the leasing company. After four years of use, the salvage value for machine B will remain at $1,000. Since we do not know the salvage values of the machines after one-year use, consider the following alternatives. Alternative 1. Buy Machine A and use it for 4 years. Then lease a machine for one year. Note that you should change the oil filter before leasing the machine.Alternative 2. Buy Machine B and use it for 5 years.Alternative 3. Lease a machine for 5 years.Which decision appears to be the best at i=10%. Assume that the lease payment is in the beginning of a year.Click the icon to view the expected receipts and disbursements for machines.The equivalent annual cost for alternative 1 over a 5-year period is $.(Round to the nearest dollar.)\table[[Item,Machine A,Machine B],[First cost,$6,500,$8,500],[Service life,4 years,6 years],[Estimated salvage value,$600,$1,000],[Annual O