Machines A and B are mutually exclusive and are expected to produce the following real cash flows:

Cash Flows ($ thousands)
Machine	C0	C1	C2	C3
A	100	+110	+121
B	120	+110	+121	+133

The real opportunity cost of capital is 10%. (Use PV table.)

a.	Calculate the NPV of each machine. (Do not round intermediate calculations. Round your answers to the nearest thousand.)

Machine	NPV
A	$
B	$

b.	Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places and final answers to the nearest thousand.)

Machine	Cash flow
A	$
B	$

c.

Which machine should you buy?

	Machine A
	Machine B