A Dentist Is Deciding Between Two X- Ray Machines for His

Short Answer

A dentist is deciding between two X- ray machines for his new office. Estimated costs for each machine are given below. $$\begin{array} { | l | l | l | } \hline \text { Machine } & \text { A } & \text { B } \\\hline \text { Installed cost } & \$ 50,000 & \$ 52,000 \\\hline \text { Annual maintenance } & \$ 1500 & \$ 1200 \\\text { cost } & & \\\hline \text { Market value at year } 10 & \$ 5750 & \$ 6250 \\\hline \text { Life, years } & 10 & 10 \\\hline\end{array}$$ Which machine should be recommended based on the annual worth method and an actual- dollar analysis? Use an inflation- free MARR of 14%, an inflation rate of 6.5% per year, and a study period of 10 years.