A company must install a production machine.

Machine X has an initial cost of $$40,000$ with an annual operating and maintenance $($O&M$)$ cost of $$30,000$ and a salvage value of $$5,000$ after its $5-$year life. It will generate an annual benefit of $$150,000.$

Which choice below gives the correct NPW equation for machine X$?$ Interest rate, i $=15\%.$

Reminder: NPW $=$ PW $($benefits$)-$ PW $($costs$)$

A company must install a production machine.

Machine X has an initial cost of $$40,000$ with an annual operating and maintenance $($O&M$)$ cost of $$30,000$ and a salvage value of $$5,000$ after its $5-$year life. It will generate an annual benefit of $$150,000.$

Which choice below gives the correct NPW equation for machine X$?$ Interest rate, i $=15\%.$

Reminder: NPW $=$ PW $($benefits$)-$ PW $($costs$)$

NPW $=[$ $$150$k $($P$/$A$,15\%,5)]-[$ $$40$k $+$ $$30$k $($P$/$A$,15\%,5)-$ $$5$k $($P$/$F$,15\%,5)]$

NPW $=[$ $$150$k $($P$/$A$,15\%,5)]-[$ $$40$k $-$ $$30$k $($P$/$A$,15\%,5)+$ $$5$k $($P$/$F$,15\%,5)]$

NPW $=[$ $$150$k $($P$/$A$,15\%,5)]-[$ $$40$k $+$ $$30$k $($P$/$A$,15\%,5)+$ $$5$k $($P$/$F$,15\%,5)]$

NPW $=[$ $$150$k $($P$/$A$,15\%,5)]+[$ $$40$k $+$ $$30$k $($P$/$A$,15\%,5)+$ $$5$k $($P$/$F$,15\%,5)]$