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 $$12,000$ $$20,000$

Labor per year $$2,400$ $$4,000$

Maintenance per year $$4,000$ $$1,200$

Salvage value $$1,600$ $$7,500$

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 $=$$enter your response here

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

The NPV for Machine B $=$$enter your response here

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

He is told to assume that:

The life of each machine is $3$ years.

The company thinks it knows how to make $14\%$ on investments no more risky than this one.

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