Assume you need to purchase a new machine for your business, and you are comparing machine S to

machine L$.$ Both machines cost $$3,000$ and have an economic life of $4$ years. Your return on the

investment must be at least $10\%($r $=10\%).$ The following table shows the cash flows for each

machine:

Year Cash Flow $($S$)$ Cash Flow $($L$)$

$0(3,000)(3,000)$

$11,500400$

$21,200900$

$38001,300$

$43001,500$

Find out NPV for each project and Which Project should be chosen according to NPV$?$

Group of answer choices

A$.$ Project S NPV $=$ $$151\mathrm{.}33,$ Project L NPV $=$ $$108\mathrm{.}67.$ Select Project S

A$.$ Project S NPV $=$ $$101\mathrm{.}33,$ Project L NPV $=$ $$161\mathrm{.}33.$ Select Project L

A$.$ Project S NPV $=$ $$161\mathrm{.}33,$ Project L NPV $=$ $$108\mathrm{.}67.$ Select Project S

A$.$ Project S NPV $=$ $$161\mathrm{.}33,$ Project L NPV $=$ $$133\mathrm{.}67.$ Select Project S