Question 17 A company is considering purchasing either machine A or B, given that MARR is 10%, and the company Not yet answered projected sales is 40,000 units. Marked out of 8.00 Flag question Machine B Initial cost Annual revenues Annual Operation cost Annual Maintenance cost Machine A $100,000 $40,000 $1000+0.03xunit $500+0.05xunit 6 years $15,000 $120,000 $39,000 $1100 +.02xunits $600 +0.03xunits Life span 8 years Salvage value $10,000 a. Draw the cash flow diagram for each machine. b. Compute ERR for each machine, based on computed ERRs, which machine is to be selected? Explain the difference between the IRR & ERR methods as explained in the lecture, C. EN R