Your company has two alternatives to replace a machine. One is relatively cheap with a short economic life, and the other is more expensive but will last longer and has lower O&M costs. Detailed numbers are given in the table below, and a 9% annual interest is used. Machine A (Cheap) Machine B (Expensive) Initial Costs $3,000 $4,500 Annual Revenues $1,000 *1,300 Operation & Maintenance $150 $100 Overhaul in year 6 S- $2,000 Salvage Value $2,000 $3,000 Lifetime 4 years 8 years a) (V2 pts) Name the economic situation for this problem. b) (2 pts) Use a Present Worth Analysis to determine the economically better choice