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.Q) A small manufacturing firm is considering purchasing a new boring machine to modernize one of its production lines. Two types of boring machine are available on the market. The machines are described by the following characteristics: Item Machine A First cost $7,234 Service life 8 years - Salvage value $569 Annual O&M costs $729 CCA rate 30% Machine B $8,805 10 years $1,026 30% Determine the break-even annual O&M costs for machine A so that the present worth of machine A is the same as that of machine B. Use a MARR (after tax) of 10% and a marginal tax rate of 30%. .Q) A small manufacturing firm is considering purchasing a new boring machine to modernize one of its production lines. Two types of boring machine are available on the market. The machines are described by the following characteristics: Item Machine A First cost $7,234 Service life 8 years - Salvage value $569 Annual O&M costs $729 CCA rate 30% Machine B $8,805 10 years $1,026 30% Determine the break-even annual O&M costs for machine A so that the present worth of machine A is the same as that of machine B. Use a MARR (after tax) of 10% and a marginal tax rate of 30%