Complete the following problems. 1. A machine costing $30,000 to buy and $2,750 per year to operate will save mainly labor expenses in packaging over eight years. The anticipated salvage value of the machine at the end of eight years is $2,500. 2. A company is looking at purchasing new vehicles to enhance their fleet. Vehicle Initial Cost Annual Operating Cost Salvage Value A $32,000 $4,250 $6,000 B $28,000 $5,000 $4,000 C $30,000 $4,750 $5,000 D $34,500 $5,000 $7,000
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