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

	Machine A		Machine B
Original Cost	$12,000		$24,000
Labor per year	$2,000		$4,400
Maintenance per year	$4,300		$1,000
Salvage value	$2,000		$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 8% on investments no more risky than this one.

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

1. The NPV for Machine A= $ ?

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

2. Calculate the NPV for Machine B= $ ? (round your responses to two decimal places and include a minus sign ifnecessary).

3. Using the net present value as the basis of comparing the machines, Tim should recommend Machine A or B?