Need Help with Question 2. Just take question two as a three year depreciation to zero salvage value.

1. Machines A and B produce the same product. However, machine B is capable of higher-quality work, which is expected to result in greater revenue. The following are relevant data: Machine B $30,000 8 years Capital investment Useful life Market value at end of useful life Annual receipts Annual expenses Machine A $21,000 8 years $4,000 $150,000 $138,000 SO $188,000 $170,000 Using three years capital allowance, a flat tax rate of 17% and an interest rate of 10%, determine the present value of the after-tax cash flow associated with the purchase and operating of both machines over 8 years. Repeat Question 1 based on 200% DB with switchover to SL based on a depreciable life of three years and zero salvage value. Are the present values obtained here higher or lower than the one obtained under three years capital allowance? 1. Machines A and B produce the same product. However, machine B is capable of higher-quality work, which is expected to result in greater revenue. The following are relevant data: Machine B $30,000 8 years Capital investment Useful life Market value at end of useful life Annual receipts Annual expenses Machine A $21,000 8 years $4,000 $150,000 $138,000 SO $188,000 $170,000 Using three years capital allowance, a flat tax rate of 17% and an interest rate of 10%, determine the present value of the after-tax cash flow associated with the purchase and operating of both machines over 8 years. Repeat Question 1 based on 200% DB with switchover to SL based on a depreciable life of three years and zero salvage value. Are the present values obtained here higher or lower than the one obtained under three years capital allowance