200 $ 2 650 7.5%

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $200. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $2,650 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 7.5% per year, what should your friend do? What is your advice if the machine takes one year to build? The NPV of the machine is $ (Round to the nearest dollar.) What should your friend do? (Select the best choice below.) O A. Reject the machine because the NPV is less than $0. OB. Reject the machine because the NPV is equal to or greater than $0. O C. Accept the machine because the NPV is equal to or greater than $0. OD. Accept the machine because the NPV is equal to or less than $0. What is your advice if the machine takes one year to build? The net present value in this case will be $ (Round to the nearest dollar.) What should your friend do? (Select the best choice below.) O A. Reject the machine because the NPV is equal to or greater than $0. O B. Accept the machine because the NPV is equal to or greater than $0. O C. Accept the machine because the NPV is equal to or less than $0. OD. Reject the machine because the NPV is less than $0. Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $200. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $2,650 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 7.5% per year, what should your friend do? What is your advice if the machine takes one year to build? The NPV of the machine is $ (Round to the nearest dollar.) What should your friend do? (Select the best choice below.) O A. Reject the machine because the NPV is less than $0. OB. Reject the machine because the NPV is equal to or greater than $0. O C. Accept the machine because the NPV is equal to or greater than $0. OD. Accept the machine because the NPV is equal to or less than $0. What is your advice if the machine takes one year to build? The net present value in this case will be $ (Round to the nearest dollar.) What should your friend do? (Select the best choice below.) O A. Reject the machine because the NPV is equal to or greater than $0. O B. Accept the machine because the NPV is equal to or greater than $0. O C. Accept the machine because the NPV is equal to or less than $0. OD. Reject the machine because the NPV is less than $0