You are asked to decide between two possible machines, A and B, that have identical capacity. They differ in their operating costs and life span. The first machine will last three years and the second machine will last five years.

You are asked to decide between two possible machines, A and B, that have identical capacity. They differ in their operating costs and life span. The first machine will last three years and th second machine last five years. The costs associated with operating them are as follows: End-of-Year Costs (in $000) CA C5 Machine Co C1 C2 C3 A 15 4 4 4 6 6 B 10 6 6 If the appropriate risk-adjusted discount rate is 6% which machine would you chose and why