4 Suppose that by investing $20.000 in Machine A. a producer could increase his net cash flows as given below. Investing in $9.500 in Machine B, would also yield the net cash flows iven below. Assuming a weighted average cost of capital of 15 percent, answer the following: Machine A CF S(20.000) CF - 56.500 CF = 5 6.500 CF, = $6,500 CE - 56,500 CF.SE Machine B CF = $19,500) CF,- 55.500 CF - $5.500 CF, - $5.500 b Using the Net Present Value (NPV) approach, evaluate (solve for NPV and indicate if you would invest or not the investment in Machine A. 2nd of then 2nd cue work CF -20,000 CD 6,500 for 5 Then Nev; see I 15 enter then CPT and see NPV =842, 231.47 Accept Using the Net Present Value (NPV) approach, evaluate (solve for NPV and indicate if you would invest or not the investment in Machine B 2nd of then and Che Work UFO - 9500 Co 5,500 Fo, 3 Then Npv; see I =15 then CPT and seenPV = 3,057.74 Accept Ythe producer could invest in only one machine, use the Annuity Equivalents approach to determine which one should he invest in? NOVA= 342 231.48 = n=5 Machine A I=15 CPT Pmt - 590,527.54 NPVB=3,057,74 PV n=3 I= 15 CPT PMX = 837,96