Question: 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

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 comma 000$15,000

$ 24 comma 000$24,000

Labor per year

$ 2 comma 200$2,200

$ 4 comma 000$4,000

Maintenance per year

$ 4 comma 600$4,600

$ 1 comma 000$1,000

Salvage value

$ 2 comma 000$2,000

$ 7 comma 500$7,500

He is told to assume that:

1. The life of each machine is 33 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 Machine B = $________

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