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Homework. Chapter S/ Homework Score: 0 of 1 pt X Problem S7.37 Tim Smunt has been asked to evaluate two machines. After some investigation, he
Homework. Chapter S/ Homework Score: 0 of 1 pt X Problem S7.37 Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table Save HW Score: 88.33%, 13.25 of 15 pts 14 of 15 (15 complete) Question Help Machine A $10,000 $2,400 $4,300 $2,400 Machine B $24,000 $4,000 $1,000 $7,200 Original Cost Labor per year Maintenance per year Salvage value He is told to assume that 1. The life of each machine is 3 years 2. The company thinks it knows how to make 8% on investments no more risky than this one 3. Labor and maintenance are paid at the end of the year The NPV for Machine A-S -25,361 (round your response to the nearest whole number and include a minus sign if necessary) The NPV for Machine B = $-31,170 (round your response to the nearest whole number and include a minus sign if necessary) Using the net present value as the basis of comparing the machines, Tim should recommend
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