Huck Long is the VP of production at Discraft Inc., manufacturer of freestyle, golf and ultimate discs. The R&D team has designed a new $175$ gram ultimate disc that can fly $10\%$ further than the old design. The manufacturing process requires a new stamping machine. Huck is considering two alternative machines: Machine A and Machine B$.$

Machine A costs $$90,000,$ stamps at a high speed put wears out after two years. Huck estimates that Machine A can produce after tax cash flow of $$60,000$ at the end of each of the two years.

Machine B also costs $$90,000,$ but it'stamps at a slower speed and can last four $(4)$ years. Huck estimates that it will produce after tax cash flow of $$36,000$ at the end of the next $4$ years.

Discraft's cost of capital is $12\%.$ Use the replacement chain technique to compare the two alternatives. What is the NPV of each chain, and which should Huck choose?

What is the NPV of the chain for Machine A$?($Round your answer to the nearest dollar.$)$

What is the NPV of the chain for Machine B$?($Round your answer to the nearest dollar.$)$

$

Machine B

Machine A

Which machine should be selected?