Machines A and B are mutually exclusive and are expected to produce the following real cash flows:

Cash Flows ($ thousands)
Machine	C0	C1	C2	C3
A	111	+121	+132
B	131	+121	+132	+144

The real opportunity cost of capital is 11%. (Use PV table.)

a.	Calculate the NPV of each machine. (Do not round intermediate calculations. Enter your answers in thousand rounded to the nearest whole number.)

Machine	NPV
A	$
B	$

b.	Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Enter your answers in thousand rounded to the nearest whole number.)

Machine	Cash flow
A	$
B	$
PLEASE EXPLAIN IN DETAIL HOW YOU ARRIVED AT THE ANSWER