Eagle Manufacturing is trying to decide which of two machines to purchase. Data related to each machine are provided below:

Assuming the discount rate is 10%, which of the following statements is accurate (the present value of an annuity at 10% for 6 periods = 4.3553; the PV of 1 at 10% for 6 periods = 0.5645)?

The Silver models NPV is $933 lower than the Gold models.

The Silver models NPV is $13,822 lower than the Gold models.

The Silver models NPV is $1,486 lower than the Gold models.

The Silver models NPV is $15,740 lower than the Gold models.

Machine model Initial investment to buy machine $87,000 $59,500 Net annual cash flow from machine $19,500 $ 16,900 Annual savings related to decreased downtime $1,200 $1,100 Salvage value after 6 years $7,200 $3,800 Silver Gold