Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis.

                                                            Machine X             Machine Y

Initial Cost                                               $200                        $700

Uniform annual benefit                              $95                        $120

Salvage value                                            $50                        $150

Useful life in years                                         6                             12

Which machine should be bought?

List the decision guideline for single project

List the selection rule for incremental analysis

List the procedures for the incremental analysis.