DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has...

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DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an estimated life of 10 years, a salvage value of $2,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $9,000, a life of 10 years, and no salvage value. Its annual operating costs will be $250 regardless of the number of gumdrops produced. MARR is 10% per year, and 15 million gumdrops are produced each year. Which machine should be recommended? Machine 7745 Both Machines Machine A37Y Do nothing

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