Problem 2 - Star, Inc. wants to evaluate two methods of shipping their products. The following cash flows are associated with the alternatives: First cost O&M costs O&M Cost gradient Annual benefit Salvage values Useful life Machine A 700,000 18,000 900/year 154,000 142,000 Machine B 1,700,000 29,000 750/year 303,000 210,000 20 a) Draw the Cash Flow Diagram for each alternative. b) Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative