Machine A	Machine B	Machine C
	$	$	$
Year 1	50,000	38,000	26,000
2	50,000	38,000	26,000
3	38,000	38,000	38,000
4	26,000	38,000	50,000
5	26,000	38,000	50,000

Supermen Corp. is considering buying a machine and has three options, machine A, B or C, only one of which it will buy. Each machine costs $135,000 and will have a five-year life with residual value of $5 000 at the end of that time. The net cash flow for the five years period are as shown above. Supermens cost of capital is 12%. Ignore tax effect on depreciation. The firm uses straight-line method of depreciation. Required: i) The NPV of each option ii) State and explain which machine Supermen should choose. Justify your answer.