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: :I

 Tim Smunt has been asked to evaluate two machines. After some

investigation, he determines that they have the costs shown in the following

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: :I Machine A Machine B Original Cost $12,000 $28,000 Labor per year $2,000 $4,400 Maintenance per year $4,600 $1,000 Salvage value $2,000 $7,000 He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 8% 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)

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