Compare the two scenarios for acquiring a machine for a project for 28 years expected operations, at a company with an internal rate of return of i = 13%. Which scenario is better? Please round to the nearest $.

Scenario 1. Buy an initial small machine at $10,000, it cost $2,400/year to run for the first 18 years, buy a second larger machine at $20,000 and run it for 10 years at a cost of $4,000/year. There is no salvage value at the end of service for either machine.

Scenario 2. Buy a large machine for $35,000 and run it for 28 years at a cost of $1,100/year. At the end of the 28 years, the machine is assumed to have a salvage value of $3,000.