Machine X costs $248,751 and has annual operating andmaintenance costs of $9,980. Machine Y costs $264,500 and hasannual operating and maintenance cost of $5,120. Both machines areClass 39, which specifies a CCA rate of 25%. The company needs themachines for 11 years, and at the end of year 11 machine X can besold for $12,257 and machine Y can be sold for 13,033. TheCompany's MARR is 10%, and its marginal tax rate is 35%. Do anafter-tax analysis to determine which machine should be chosen.
