The NPV for Machine

A=$

(round your response to the nearest whole number and include a minus sign if necessary).

The NPV for Machine

B=$

(round your response to the nearest whole number and include a minus sign if necessary).

Using the net present value as the basis of comparing themachines, Tim should recommend Machine _ .

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Original Cost Labor per year Maintenance per year Salvage value Machine A $15,000 $2,000 $4.600 $1,600 Machine B $28,000 $4,000 $800 $7,000 He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks knows how to make 8% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year