Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 percent and uses straight-line depreciation to a zero book value over a machine's life. Ignore taxes. Machine A has a cost of $320,000, annual operating costs of $8,500, and a life of 3 years. Machine B costs $247,000, has annual operating costs of $9,000, and a life of 2 years. Whichever machine is purchased will be replaced indefinitely at the end of its useful life. Which machine should Bruno's purchase and why?

A) machine b because it will save the company about $16510 a year

b) indifferent the machines produce the same saving

c) machine A because it will save about $13406 a year

d) Machine A because it will save the company about $12436 a yr

e) Machine B it will save the company about $11609 a year