Question: The NPV for Machine b =??????? (round your response to the nearest whole number and include a minus sign if necessary). Tim Smunt has been

The NPV for Machine b =???????

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

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table:

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Machine A

Machine B

Original Cost

$ 12 comma 000$12,000

$ 24 comma 000$24,000

Labor per year

$ 2 comma 400$2,400

$ 4 comma 800$4,800

Maintenance per year

$ 4 comma 600$4,600

$ 800$800

Salvage value

$ 1 comma 600$1,600

$ 7 comma 000$7,000

He is told to assume that:

1. The life of each machine is

33

years.2. The company thinks it knows how to make

1212%

on investments no more risky than this one.

3. Labor and maintenance are paid at the end of the year.

The NPV for Machine

Aequals=$negative 2767427674

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

Bequals=$nothing

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

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