IBP Inc. is considering establishing a new machineto automate a meatpackingprocess. The machinewill save $55,000 in labor annually. The machinecan be purchased for $225,000 today and willbe used for 10 years. It has a salvage value of$12,500 at the end of its useful life. The newmachine will require an annual maintenance costof $11,000. The corporation has a minimum rate ofreturn of 9%. Do you recommend automating theprocess

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan