the company is choosing between machine a and b (they are mutually exclusive and the company can only pick one). the initial cost of machine a is $300,000 and it will last for 5 years before it needs to be replaced. the cost of operating machine a each year is $50,000. the initial cost of machine b is $400,000 and it will last for 7 years before it needs to be replaced. the cost of operating machine b is$30,000
in cash flow per year. If the required rate of return is10%, (a) Calculate the 7 year and 5 year annuity factors at10%annual interest. (b) Using the annuity factors, find the PV of Machine A and Machine B including all costs (initial + operating). (c) Which machine is a better choice for the company after considering the different lives of the projects? (Note: be sure to use the equivalent annual annuity method)