Machine A was purchased last year for ​$19,500 and had an estimated MV of ​$3,500 at the end of its seven​-year life. Annual operating costs are ​$2,100. The machine will perform satisfactorily over...

Machine A was purchased last year for ​$19,500 and had an estimated MV of ​$3,500 at the end of its seven​-year life. Annual operating costs are ​$2,100. The machine will perform satisfactorily over the next six years. A salesman for another company is offering a​ replacement, Machine B​, for ​$13,700​, with an MV of ​$1,300 after six years. Annual operating costs for Machine B will only be ​$1,300. A​ trade-in allowance of ​$9,600 has been offered for Machine A. If the​ before-tax MARR is 6​% per​ year, should you buy the new​ machine? Machine A was purchased last year for $19,500 and had an estimated MV of $3.500 at the end of its seven year life. Annual operating costs are $2,100. The machine will perform satisfactorily over the next six years. A salesman for another company is offering replacement, Mlachine 0, for $13,.700. with an MV of $1,300 aller six years. Arnual operaling cosls for Machine B will only be $1 300. A trade-in allowance of $9,600 has boen offered for Machine A. If ixe before-tax MARR is 5% per year, shouid you buy the new machine? A Cick the icon to view the interest and ennuity table for discrete compounding when MARR - 6% per year Chouse the vorect answer beluw. O. Yes, purchase Machine B O. No, continue with Machine A