i% = 18

PA(X) = needed

Pc(X) = needed

Ps(X) = needed

PW(X) = needed

PA(Y) = needed

Ps(Y) = needed

PW(Y) = needed

delta(C+O) = needed

deltaB = needed

deltaB/C = needed

Case 3: Machine X has a first cost of $70,000 and an operating cost of $21,000 in year 1, increasing by S500 per year through year 5 with a salvage value of $13,000. Machine Y has a first cost of $62,000 and an operating cost of $21,000 in year 1, increasing by 3% per year through year 10 with a salvage value of $2000. If the interest rate is i% per year, evaluate which machine must you choose on the basis of: (a) the present worth analysis, (b) the conventional B/C analysis