Question: Swed Help Save & E 6 Che Problem 6-1 Analysis of alternatives [LO6-3,6-7) Esquire Company needs to acquire a molding machine to be used in
Swed Help Save & E 6 Che Problem 6-1 Analysis of alternatives [LO6-3,6-7) Esquire Company needs to acquire a molding machine to be used in ts manufacturing process. Two types of machines that would be oppropriate are presently on the market. The company has determined the folowing (EV ot S1. PY of S1. EVA of. S. PVA of S1. EVAD of $1 and PVAD of $1) (Use appropriate factorts) from the tables provided) eBock Prine dreces Machine A could be purchased for $46.750, It will last 10 years with annual maintenance costs of $1.600 per year After 10 years the machine can be sold for $4,675 Machine B could be purchased for $42,500. it also will last 10 ye 8,000 in year six, and $9,600 in year eight. After 10 years, the machine will have no salvage value ars and will require maintenance costs of $6.400 in year three, Required Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are end of each year, Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount) Calculate the present value of Machine A & Machine 8. Which machine Esquire should purchase? PV Machine A Machine B Esqure should puschse Maschine A
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