A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR...

Extracted text: A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Initial Investment Annual Cost Market Value at Alternative A $14,000 $14,000 $8,000 Alternative B $65,000 $9,000 $13,000 End of Useful Life Useful Life a) Which machine would be selected on the basis gf teBratabilitx, assumption? b) Using co-terminated assumption with a 5.year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? 5 years 20 years