Wildhorse Corporation is considering purchasing one of two new machines.
Estimates for each machine are as follows:
\begin{tabular}{lrr}
\hline & \multicolumn{1}{c}{ Machine A } & \multicolumn{1}{c}{ Machine B } \\
\hline Investment & \( \$ 108,300 \) & \( \$ 154,800 \) \\
\hline Estimated life & 8 years & 8 years \\
\hline Estimated annual cash inflows & \( \$ 27,000 \) & \( \$ 39,000 \) \\
\hline Estimated annual cash outflows & \( \$ 6,100 \) & \( \$ 9,700 \) \\
\hline
\end{tabular}
Salvage value for each machine is estimated to be zero.
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