Question: Tim Smun has been asked to evaluate two machines. After some investigation , he determines that they have the cost show in the following table

Tim Smun has been asked to evaluate two machines. After some investigation , he determines that they have the cost show in the following table Machine A. Machine B Original cost $10,000. $28,000 labor per year $2,000. $4,000 Maintenance $ 4,300. $1,200 Salvage value $2,400. $7,200

He is told to assume that 1.The life of each machine is 3 years. 2.The company thinks it knows how to make 14% on investments no more risky than one. 3. labor and maintenance are paid at the end of the year.

The NPV for Machine A=$ ...... The NPV for Machine B=$......

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