Co. X has gathered the following estimates:

	Machine A	Machine B
Cost	$600,000	$600,000
Life	5 yrs	5 yrs

Net Cash Inflow:

Yr 1	$100,000	$500,000
Yr 2	$200,000	$400,000
Yr 3	$300,000	$300,000
Yr 4	$400,000	$200,000
Yr 5	$500,000	$100,000

Co. X uses the net present value method to evaluate capital expenditures. Which of the following two machines has the higher net present value?

Question 13 options:

	Machine A
	Machine B
	They are the same
	Cannot be determined from the information provided