Machine A was purchased three years ago for $15,000 and had an estimated market value of $1,000 at the end of its 10 years life. Annual operating cost is $1,000. Machine B has a cost of $50,000 with market value of $5,000 after 10 years. Annual operating cost of $800, and Machine A could be sold by $8,000. The MARR= 6%
a. Using the outsider viewpoint, what is the (EUAC) equivalent uniform annual cost of continuing the use of Machine A?
b. Using the outsider viewpoint, what is the (EUAC) equivalent uniform annual cost of buying the Machine B?