Problem
Compare two units, A and B. A has a new cost of $42000, a life expectancy of 14 years. A salvage value of $4000. and annual operating cost of $3000. B has a new cost of $21000. A life expectancy of 7 years. A salvage value of $2000. and an operating cost of $5000. Assume an annual interest rate of 7%. which of the two units would you recommend? What initial cost of machine A would make the two machines identical in overall cost?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.