Two machines, A and B, which perform the same functions, have the following costs and lives. Machine A: PV of costs =$55,000; Life of usage =8 years. Machine B: PV of costs =$72,000; Life of usage =11 years. The two machines are mutually exclusive and the cost of capital is 12 percent. Which machine would you choose? Machine A, because the Equivalent Annual Cost is $11,071.66 Machine A, because the Equivalent Annual Cost is $6,545.46 Machine B, because the Equivalent Annual Cost is $11,071.66 Machine B, because the Equivalent Annual Cost is $12,125.91 Question 5 (5 points) Suppose that Viking Industry is proposing to invest $25 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax rate is 21%, and the discount rate is 12%. What is the present value of Viking Industry's depreciation tax shields? $2.97 million $2.50 million