You must recommend one of two machines into an upgraded manufacturing line. You obtain estimates from salespeople from two companies. Salesman A gave the estimates in constant-value dollars, while...

Extracted text: You must recommend one of two machines into an upgraded manufacturing line. You obtain estimates from salespeople from two companies. Salesman A gave the estimates in constant-value dollars, while salesman B provided in future (then-current) dollars. The company's MARR is equal to the real rate of return of 20% per year, and inflation is estimated at 4% per year. Use present worth analysis to determine which machine the engineer should recommend. A B First Cost $140.000 $ 25.000 10 $150.000 $ 43,000 10 Annual Cost Life (years)