A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are

calculated using Excel and the results follow.

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Potential Machine Investments

Present value of net cash flows $($excluding initial investment and salvage$)$

Present value of net cash flow from salvage value

Initial investment

a$.$ Compute the net present value of each machine A and $B.$

b$.$ If the company can choose only one machine, which will it choose on the basis of net present value?

Complete this question by entering your answers in the tabs below.

Required A

Required B

Compute the net present value of each machine A and B$.$