Answer:
MACHINE 7745: -20,862.72
MACHINE A37Y: -18,281.02
Explanation:
production: 30,000,000
<u>Machine 1</u>
cost 10,000
life 10 years
salvage value 1,000
operating cost 0.01 per 1000 units. 0.01 x 30,000,000/1,000 = 300
Minimun accepted rate of retrun 6%
<u>Future value of the Operating cost</u>
C = 300
r = 0.06
time = 10
FV -$3,954.24
<u>Future Value of the Investment</u>
Total -17,908.48 - 3,954.24 + 1,000 = -20,862.72
<u>Machine 2</u>
8,000
life 10 years
no salvage value
operating cost 300
<u>FV of the operating cost:</u> - 3,954.24
<u>FV of the Investment:</u> -14,326.78
Total: -3,954.24 - 14,326.78 = -18,281.02
Edit: sorry but the math toll is not working as it should be =(