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 $15,000 $20,000 Labor per year $2,400 $4,000 Maintenance per year $4,600 $1,200 Salvage value $2,000 $7,500

He is told to assume that:

1. The life of each machine is 3years.

2. The company thinks it knows how to make 12% 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 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 the machines, Tim should recommend A or B