Final answer:
The student's question concerns finding the present value (PV) annuity factor for a machine with an 8-year life span and an annual labor saving, assuming a discount rate of 10%. The PV factor can be found using financial tables or calculated with the PV of an annuity formula. The exact answer is not provided in the question and must be determined separately.
Step-by-step explanation:
The question involves determining the present value (PV) factor for an annuity when analyzing the cost and savings generated by two machines, A and B, with different life spans and annual labor savings. Given a discount rate of 10% per annum, we need to find the present value annuity factor for machine A's useful life of 8 years.
Using financial tables or a financial calculator, we find the present value annuity factor at 10% for 8 years. It is not explicitly provided in the question's options, so the calculation must be done separately. Typically, such factors can be found in present value tables or calculated using the formula for the present value of an annuity:
PV annuity factor = 1 - (1 + r)^-n / r
where r is the discount rate (0.10 in this case) and n is the number of periods (8 years for machine A).
Given the context of the question, the correct PV annual factor would be one of the options provided but can't be determined without actual calculation or reference to financial tables.