Answer the following about Onward Inc:

A. Onward Inc is considering the purchase of a new machine for the production of computers.Machine A costs $4,500,000 and will last for 5 years.Variable costs are 15% of sales and fixed costs are $750,000 per year.Machine B costs $6,000,000 and will last for 7 years.Variable costs for the machine are 20% of sales and fixed costs are $1,000,000 per year.The sales for each machine will be $3,000,000 per year.The required rate of return is 7%, the tax rate is 21%, and both machines will be depreciated using straight-line with a no salvage value.Calculate the net present value for Machine B. (Round to 2 decimals)

B. Onward Inc is considering the purchase of a new machine for the production of computers.Machine A costs $4,500,000 and will last for 5 years.Variable costs are 15% of sales and fixed costs are $750,000 per year.Machine B costs $6,000,000 and will last for 7 years.Variable costs for the machine are 20% of sales and fixed costs are $1,000,000 per year.The sales for each machine will be $3,000,000 per year.The required rate of return is 7%, the tax rate is 21%, and both machines will be depreciated using straight-line with a no salvage value.Calculate the equivalent annual annuity for Machine A.(Round to 2 decimals)

C. Onward Inc is considering the purchase of a new machine for the production of computers.Machine A costs $4,500,000 and will last for 5 years.Variable costs are 15% of sales and fixed costs are $750,000 per year.Machine B costs $6,000,000 and will last for 7 years.Variable costs for the machine are 20% of sales and fixed costs are $1,000,000 per year.The sales for each machine will be $3,000,000 per year.The required rate of return is 7%, the tax rate is 21%, and both machines will be depreciated using straight-line with a no salvage value.Based on the information provided, the firm should:

I. purchase machine Bbecause it has a higher NPV

II. purchase machine Bbecause it has a higher equivalent annual annuity

III. purchase machine A because it has a higher NPV

IV. purchase machine A because it has a higher equivalent annual annuity