the drop down options are machine 1 or machine 2

MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $500,000 but yields a 15 percent savings over the current machine used. Machine 2 costs $800,000, but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost Information for the current machine is also provided. Year 1 2 3 4 5 Project Cost 1,000,000 1,250,000 1,450,000 1,500,000 2,400,000 a. Based on the NPV of the cash flows for these 5 years, which machine should MKM International purchase? Assume a discount rate of 12 percent. because the NPV of machine 1 is $ and the NPV of machine 2 is $ Assuming a discount rate of 12 percent, MKM International should purchase (Enter your responses rounded to the nearest whole number.) b. If MKM International lowered its required discount rate to 7 percent, what machine would it purchase? because the NPV of machine 1 is S and the NPV of machine 2 is S Assuming a discount rate of 7 percent, MKM International should purchase (Enter your responses rounded to the nearest whole number.)