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6. Justin Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: Machine A Machine B End of

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6. Justin Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: Machine A Machine B End of Year $5,000 $4,000 $3,000 $1,000 $2,000 $12,000 Justin Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Justin purchase and why? Hint: This is a two-part question. Part 1. Make sure you calculate the NPV for both machines and Part 2. Which machine should the company invest in and why? (3 points) Respond to both parts of this problem on the next page

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