Savings of $5600 per year can be achieved through either a $14 000 machine (A) with a sevenyear service life and a $2000 salvage value, or a $25 000 machine (B) with a ten-year service life and a $10 000 salvage value. If the MARR is 9 percent, which machine is a better choice, and for what annual benefit or cost? Use annual worth and the capital recovery formula.