Question: Compare the alternatives below using present worth analysis at i = 6% per year and a 4-year study period. Choose the closest answer. Machine A

Compare the alternatives below using present worth analysis at i = 6% per year and a 4-year study period. Choose the closest answer.

Machine A Machine B

First cost $20,000 $30,000

Annual Cost per year $9,000 $7,000

Salvage Value $4,000 $5,000
Answers: 1.

Select Machine B as it is $2,748 cheapter.
2.

Select Machine B as it is $1,281 cheapter.
3.

Select Machine A as it is $5,248 cheapter.
4.

Select Machine A as it is $3,348 cheapter.

please choose the answers 1 2 3 or 4. Please show work

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