QS $26-12($Algo$)$ Net present value analysis with salvage value; no present value calculations LO P$3$

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.

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?

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