MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine $1$ costs $ $450$ comma $000,$ but yields a $15$ percent savings over the current machine used. Machine $2$ costs $ $900$ comma $000,$ but yields a $25$ percent savings over the current machine used. In order to meet$$ demand, the following forecasted cost information for the current machine is also provided.

$$Year;Project Cost

$1$;$950,000$

$2$;$1,350,000$

$3$;$1,450,000$

$4$;$1,550,000$

$5$;$2,500,000$

a$.$ Based on the NPV of the cash flows for these $5$ years, which machine should MKM International$$ purchase? Assume a discount rate of $12$ percent.

Assuming a discount rate of $12$percent$,$ MKM International should purchase

$$

machine $1$

machine $2$

because the NPV of machine $1$ is $$$

$$

enter your response here and the NPV of machine $2$ is $$$

$$

enter your response here. $($Enter your responses rounded to the nearest whole$$ number.$)$