You are exploring 2 different machines to replace the current, outdated ones currently in use on your production floor (and have been used for 50 years previously). Each of the 2 machines are predicted to have slightly different benefits and costs associated with them. From your research you have been able to collect the following information and projections. Initial Cost Installation Annual savings Machine A 162000 25000 55000 Machine B 187000 38000 69300 Annual maintenance costs Direct Labour Savings Salvage Value Service life 1050 in year 1, increasing 10% in each year following 800 12000 85000 3 15000 75000 4 a) Your boss asked you to perform a present value analysis on each of the options for a single service life cycle if i=10%. What values do you get for each option? (4 points, 2 for each PV of lifecycle) b) Is this a reasonable way to compare these 2 machines? Explain your why or why not what approach you would recommend for a better comparison (2 points), then complete that method of analysis for both machines. You can assume that these machines would be needed for at least the next 20 years (4 points) c) Based on your calculations above, do you choose either of these machines? Explain your reasoning, and any other information that you would want to make a decision. (2 points)