Question: please workout and show formuls and solutions in excel spreadsheet! Problem Statement Questions for 10s. 8-10.10 A firm is trying to choose between two machines

Problem Statement Questions for 10s. 8-10.10 A firm is trying to choose between two machines to manufacture a new line of office furniture. The financial data for each machine have been compiled as fol- lows: Machine A Machine B $12,000 Initial investment required Service life 3 years $20,000 6 years $5,000 $4,000 $15,000 $3,000 Salvage value Annual operating expenses Annual operating revenue Depreciation method $2,500 $12,500 5-year MACRS 5-year MACRS The firm's marginal tax rate is 40% and uses a 15% discount rate to value the projects. Also, assume that the required service period is indefinite. 10.9 What is the net present worth of machine B after tax over 3 years? (a) $6,394 (b) $6,233 (c) $5,562 (d) $7,070
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