. Selecting the Better Machine. A Topeka party store owner is considering the purchase of a new ice machine. Two firms offer machines that promise the same sales. Both will last five years. The Hawkeye uses hamsters for power, and the Jayhawk uses solar power. The owner wants a 10 percent return. Ignore axe's

\section*{Required:}
1. Using NPV, which machine is preferred; and what is the advantage?
2. For the same money, should the owner buy two Hawkeye machines instead of one Jarhark?

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The Hawkeye The Jayhawk Cost of machine Annual cash operating costs Salvage value 2,000 $ 25,000 9,000 $ 50,000 1,000 10,000