Q$.4(8$ Points$)$

ABC company need to replace an old machine $($Defender$)$ with a new Machine. $3$ new machines $($Challenges$)$ are available to replace the old machine to be used in the production process. The relevant data for three alternative machines is given in the following table.

$\backslash$table$[[,$Old Machine,Machine A$,$Machine B$,$Machine C$,],[\backslash$table$[[$First cost $/],[$Market Value $($$$)]],10000,25000,35000,40000,],[\backslash$table$[[$Operating cost$],[($$$/$Y$)]],15000,10000,8000,5000,],[\backslash$table$[[$Salvage value $($$$)]],2000,8000,12000,15000,],[\backslash$table$[[$Expected Useful$],[$Life $($Y$)]],3,6,10,12,],[$AW$,,,,,],[$CC$,,,,,]]$

$($a$)$ If the MARR is $15\%$ per year, select the best alternative by using AW$.$

$($b$)$ If all machines have a very long Useful Life, select the best alternative by using Capitalized Cost Method $($CC$)$