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Two Machines,A and B,which Perform the Same Functions,have the Following

question 17

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Two machines,A and B,which perform the same functions,have the following costs and lives.  Type  PV Costs  Life  Machine A $60005 Machine B $80007\begin{array} { c r r } \text { Type } & \text { PV Costs } & \text { Life } \\\text { Machine A } & \$ 6000 & 5 \\\text { Machine B } & \$ 8000 & 7\end{array}
Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15%.


Definitions:

Obsessive-Compulsive Disorder

A mental health condition characterized by unwanted, repetitive thoughts (obsessions) and behaviors (compulsions) that the person feels driven to perform.

Panic Disorder

Recurrent attacks of overwhelming anxiety that usually occur suddenly and unexpectedly.

Compulsion

The psychological need to perform certain behaviors repeatedly or according to certain rules, often against one’s own wishes.

Obsession

A persistent, intrusive, and unwanted thought, urge, or image that causes significant anxiety or distress.

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