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	$ 10 comma 000

$ 28 comma 000

Labor per year	$ 2 comma 400

$ 4 comma 000

Maintenance per year	$ 4 comma 000

$ 800

Salvage value	$ 2 comma 400

$ 7 comma 000

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 this one.

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

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

The NPV for Machiene B= $____ (round your response to the nearest whole number and include a minus sign if necessary)