Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $ 300

$300. However, oncebuilt, the machine will last forever and will require no maintenance. The machine can be builtimmediately, but it will cost $ 3 comma 000

$3,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 14.0 %

14.0% peryear, what should your buddydo?

The NPV of the machine is $

nothing

. (Round to the nearestdollar.)

What should your buddydo? (Select the best choicebelow.)

A.

Reject the machine because the NPV is equal to or greater than$0.

B.

Accept the machine because the NPV is equal to or greater than $ 0.

AcceptthemachinebecausetheNPVisequaltoorgreaterthan$0.

C.

Accept the machine because the NPV is equal to or less than$0.

D.

Reject the machine because the NPV is less than $ 0.