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There are two alternative machines for a manufacturing process.Both machines have the same output rate, but they differ in costs.Machine A costs $20,000 to set up and $8,000 per year to operate.It must be completely replaced every 3 years, and it has no salvagevalue. Machine B costs $50,000 to set up and $2,160 per year tooperate. It should last for 5 years and has no salvage value. Thecosts of two machines are shown below.012345Machine A20,0008,0008,0008,000Machine B50,0002,1602,1602,1602,1602,160Assuming the cost of capital is 10%,1. find the equivalent annual cost of Machine A in Box 1. Round itto a whole dollar, and no comma or the dollar sign.2. find the EAC of Machine B in Box 2. The same format as box1.3. Based on the equivalent annual cost method, type in Box 3 whichmachine do you recommend, Machine A or Machine B.Question 18 options:Blank # 1Blank # 2Blank # 3Johnson Jets is considering two mutually exclusive projects.Project A has an up-front cost of $122,000 (CF0 =-122,000), and produces positive after-tax cash inflows of $30,000a year at the end of each of the next six years. Project B has anup-front cost of $60,000(CF0 = -60,000) and producesafter-tax cash inflows of $20,000 a year at the end of the nextfour years. Assuming the cost of capital is 10.5%,1. Compute the equivalent annual annuity of project A in box 1.Round the EAA to a whole dollar without the dollar sign or comma,e.g., 3452 (non-negative number)2. Compute the equivalent annual annity of project B in box 2. Thesame format as box 1.3. Decide which project to undertake in box 3, either Project A orProject B.Question 17 options:Blank # 1Blank # 2Blank # 3