108) DOCA Corp. is considering the following two capital projects:

Machine AMachine B

Cost$200,000$150,000

Additional annual revenues$220,000$  80,000

Additional annual cash expenses$140,000$  30,000

Terminal salvage value-0–0-

Required after-tax rate

of return10%10%

Useful life of machine5 yrs.5 yrs.

Appropriate tax rate25%25%

CCA class9(25%)9(25%)

Additional data (for interest rate of 10 percent, 5 periods):

Present value of $10.6209

Future value of $11.6105

Present value of annuity of $13.7908

Future value of annuity of $16.1051

W



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