Singh Developers Ltd$.$ is choosing between Machine A and Machine B$.$

Machine A$,$ which has a $7-$year life span, has an after$-$tax purchase price of $$20$ million. The profitability index associated with Machine A is $1\mathrm{.}0457$

Machine B$,$ which has a $10-$year life span, has an after$-$tax purchase price of $$20$ million. The profitability index associated with Machine B is $1\mathrm{.}0568.$

The corporate tax rate is $40\%.$ The company has a cost of capital of $8\%.$

Multiple Choice

A$.$ The NPV from purchasing machine A is $0\mathrm{.}9146$ million. The NPV from purchasing machine B is $1\mathrm{.}1368$ million. The firm should purchase machine B$.$

B$.$ The equivalent annual annuity from purchasing machine A is $0\mathrm{.}1757$ million. The equivalent annual annuity from purchasing machine B is $0\mathrm{.}1694$ million. The firm should purchase machine A$.$

C$.$ The PI from purchasing machine A is $1\mathrm{.}0457$ million. The PI from purchasing machine B is $1\mathrm{.}0568$ million. The firm should purchase machine B $.$

D$.$ The equivalent annual annuity from purchasing machine A is $0\mathrm{.}1757$ million. The equivalent annual annuity from purchasing machine B is $0\mathrm{.}2183$ million. The firm should purchase machine B