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Louie’s Leisure Products must choose between buying two machines with different lives

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Louie’s Leisure Products must choose between buying two machines with different lives. Machines A and B are designed differently, but have identical capacity and do the same job. Machine A costs $1000,000 and lasts 5 years. It costs 500,000 in the first year and $400,000 per year to operate in year 2-5. Machine B costs $400,000 and lasts 2 years. It costs $300,000 per year to operate. a. (6 marks) Which machine should the company acquire? The opportunity cost of capital is 6%. b. (2 marks) If the revenues were given, could you choose one of the machines by comparing the Internal Rate of Returns (IRR) of the two alternatives? Why?