A firm is considering two machines. Machine X costs $30,000 with annual costs of $8,000 and a 5-year life. Machine Y costs $50,000 with annual costs of $5,000 and a 5-year life. At i=10%, (P/A,10%,5)=3.7908. Which has the lower present cost?
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A
Machine X: $60,326 vs Machine Y: $68,954 — select Machine X
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B
Machine Y — lower annual costs dominate
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C
Machine X — lower first cost always wins
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D
They are equivalent at i=10%