A dentist is deciding among two X-ray machines for his new office. Estimated costs for each machine are given below.
Machine A Machine B
Installed cost 50,000 52,000
Annual maintenance cost 1500 1200
Market value at year 10 5750 6250
Life, years 10 10
Compute the actual dollar annual worth of Machine B. Use an inflation-free MARR of 14 percent, an inflation rate of 6.5 percent per year, and a study period of 10 years. (HINT: skip $ and comma symbols however include +/- signs)