SITUATION: A company is trying to decide between two machine models to be purchased. Information on these machines, both of which do the same job, are as follows:

The purchase value of Model A is 55.000 TL and the service life of this machine is 4 years. It is foreseen that the sales value of the machine at the end of its useful life will be 14.000 TL. The total annual operating and maintenance expenses of this model is 7500 TL. The purchase value of the B Model is 85,000 TL and the service life of this machine is 5 years. It is predicted that the sales value of the machine at the end of its useful life will be 18,000 TL. The total annual operating and maintenance expenses of this model is 5500 TL. QUESTION: For a long-term project (20 years), a solution will be reached with the use of these models (by repurchasing when necessary). According to this; Which model would be more appropriate to choose and what is the NPW calculated for the total project duration of this model? (Current market interest rate will be taken as 12% per annum)

ATTENTION: Add the number 1 for model A and 2 for model B in front of the NPW value you calculated to enter your answer into the system (EXAMPLE: For Model A and NPW value of 100 TL, the answer is 1100, for Model B and NPW value of 100 TL, the answer is 2100. must be entered)