Downtown Abbey Corp. wants to buy a new sheep-shearing machine. It has narrowed down the choice to two machines that can do the job equally well: Machine name The Shearilizer Naked Sheep Purchase price 10,000 20,000 Useful life (years) 4 7 Maintenance cost (end of each year) 4,000 3,000 The relevant discount rate is 10%. There are no taxes. What is the net present value of all costs associated with the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Naked Sheep (in absolute terms)? Which machine should the company buy? The one with the higher equivalent annual cost The one with the lower equivalent annual cost