Q13.3

Two machines are being considered for a manufacturing process. Machine A has a first cost of $75,200 and its salvage value at the end of six years of estimated service life is $21,000. The estimated operating costs of this machine are $6,800 per year. Extra income taxes are estimated to be $2,400 per year. Machine B has a first cost of $44,000 and its salvage value at the end of six years of service is estimated to be negligible. The annual operating costs will be $11,500. What is the difference in the NPW of Machine B - Machine A if MARR = 13%? (Please show work)(Use excel if possible)

	a.	-$11,919
	b.	$11,919
	c.	-$9,056
	d.	$9,056