Machine A has a fixed cost of $10,000/year and variable cost of$5/hour. Machine B has a fixed cost of $25,000/year and variable cost of$2/hour. Determine the number of hours per year for which the two machines have equal annual costs.

A project has an initial cost of $100,000, annual benefits of$20,000, and a life of 10 years. MARR is 10%. Check the sensitivity of PW to a -20% change in annual benefits.