Northwest Digital makes various types of transmitters used in marine and military applications.They are considering replacing a CNC drilling machine that drills precision holes in circuit boards. The Busan CNC press costs $120,000,requires semi-annual maintenance costing$16,500 and has a resale value of $60,000 after 7 years. The Stuttgart CNC press costs $160,000 but requires only annual maintenance costing $8500 and has a resale value of $95,000 after 7 years. Northwest wants to buy the machine with lowest NPV over the next 7 years and uses a rate of 18% APR to evaluate projects. What is the net present value (NPV) of profit associated to Busan CNC press in present dollars?

What is the net present value (NPV) of profit associated to Stuttgart CNC press in present dollars?

Which machine is a better choice?