Question: NPV for A and B Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown

NPV for A and B NPV for A and B Tim Smunt has been asked to

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Machine A Machine B Original Cost $12,000 $24,000 Labor per year $2,000 $4,800 Maintenance per year $4,600 $1.200 Salvage value $1,600 $7,500 He is told to assume that 1. The life of each machine is 3 years 2. The company thinks it knows how to make 8% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. The NPV for Machine A-s (round your response to the nearest whole number and include a minus sign if necessary)

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