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Initial Investment is 90,000 for Machine A, 85000 for Machine B, 100000 for Machine C. Estimated life is 6 years for all the machines. Scrap

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Initial Investment is 90,000 for Machine A, 85000 for Machine B, 100000 for Machine C. Estimated life is 6 years for all the machines. Scrap Value: Machine A, B, C: 6000 Year 1 2 3 4 5 6 Machine A Machine B 24000 8000 32000 24000 40000 32000 24000 48000 16000 32000 18000 35000 Machine C 15000 24000 31000 37000 40000 25000 Calculate NPV at discounting factors 10% and 8%. And suggest which machine is accepted to purchase at 10% and at 8%. Note: DF @10% = 1/1.10 DF @ 8% = 1/1.08

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