Question: Please fully answer for machine A & B Please show alll work and excel formulas used Thanks! You are considering the purchase of one of
You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $95 initially, and then $140 per year in maintenance costs. Machine B costs $165 initially, has a life of three years, and requires $115 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. The discount rate is 12 percent and the tax rate is zero. Calculate the EAC. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Which one should you choose? Machine A life (Years) Machine A initial cost Machine A maintenance cost Machine B life (Years) Machine B initial cost Machine B maintenance cost Discount rate Tax rate 95.00 10 165.00 $115.00 12.00% 0.00% 12 15 16 17 18 19 20 21 Complete the following analysis. Do not hard code values in your calculations and do not round intermediate calculations Year Machine A CFs 0 Machine B CFs 23 24 2 Sheet1
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