Supermen Corp. is considering buying a machine and has three options, machine A, B or C, only one of which it will buy. Each machine costs $135,000 and will have a five-year life with residual value of 55 000 at the end of that time. The net cash flow for the five years period are as follows: Machine A S Machine B $ Machine C S Year 1 2 3 4 5 50,000 50,000 38,000 26,000 26,000 38,000 38,000 38,000 38,000 38,000 26,000 26,000 38,000 50,000 50,000 Supermen's cost of capital is 12%. Ignore tax effect on depreciation. The firm uses straight-line method of depreciation. Required: 1) The NPV of each option ii) State and explain which machine Supermen should choose. Justify your answer. 2