A company is considering buying either Machine A or Machine B. Machine Both machines cost $47,414, but Machine A is expected to last 4 years and generate cash flows of $19,433 each year, while Machine B is only expected to last 2 years, but generate cash flows of $31,617 each year. If the WACC is 10%, which machine is the best investment? Calculate the RELEVANT NPV of each investment project, then obtain the difference. That is, enter the NPV of buying Machine A - the NPV of buying Machine B. Hint: remember that the NPVs of projects of different lengths are not directly comparable...

I get 177.76 using Excel and it's incorrect, if you get the same answer I think our approach to RELEVANT NPV is wrong, please help thanks.

I was taught equivalent annual annuity method and this is what I used to get 177.76, if you get 177.76 with EAA too, I would like to hear about the replacement chain method you mentioned, thank you very much.