Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data: Determine which is...

Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data:

Determine which is the better alternative, assuming using straight-line depreciation method, an income tax rate of 40% and an after-tax MARR of 10%.

Extracted text: Machine A Machine B $20,000 $30,000 8 years Capital Investment Life 12 years Salvage Value Annual Receipts $4,000 $150,000 $138,000 $0 $188,000 $170,000 Annual Disbursements