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Health Care System, CEO Mr. Baker is about to make a decision between two investment alternatives. First investment is to purchase a full body scanning

Health Care System, CEO Mr. Baker is about to make a decision between two investment alternatives. First investment is to purchase a full body scanning Machine-A and second investment is to purchase a full body virtual graphics Machine-B. Mr. Baker has asked respective department to provide necessary information for evaluating the two machines. After some search, the department head produces necessary information for evaluationg the machines as follows:

Machine A

Machine B

Initial Cost

$15,000

$22,000

Operator cost per year

$2,200

$4,000

Maintenance cost per year

$4,000

$1,000

Salvage value

$2,400

$7,000

It is also assumed that, a) the life of each machine is 3 years, and b) the company thinks it knows how to make 12% on investments no more risky than this one.

Therefore, the net present value (NPV) for Machine A=____(round your response to the nearest whole number and include a minus sign if necessary).

Therefore, the net present value(NPV) for Machine B=$___ (round your response to the nearest whole number and include a minus sign if necessary).

Using the net present value method as the basis of comparing the machines, Mr. Baker should recommend (Machine A or Machine B)

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