Kruber Company Located Tennessee Is Considering Two Different Makes of a Blow

Multiple Choice

Kruber company located Tennessee is considering two different makes of a blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR =12%.
$$\begin{array} { | l | l | l | } \hline & \text { Machine } X & \text { Machine } Y \\\hline \text { Iritial cost } & \$ 150 K & \$ 275 K \\\hline \text { Annuul operating cost } & 55 \mathrm {~K} & 60 K \\\hline \text { Benefits /Year } & 100 K & 120 K \\\hline \text { Salvage value } & 20 K & 40 K \\\hline \text { Life } & { 10 \text { Years } } \\\hline\end{array}$$

A) Machine X
B) Machine Y