Star Manufacturing Company is faced with the choice of buying either of Machine A or Machine B. Both have different investments and different cost savings (revenues) which are listed below. If interest is j1=6%, which machine should the company buy according to the NPV rule.

Time Machine A Machine B

0 Investment=70,000 80,000

1 0 20000

2 20,000 20000

3 20,000 20000

4 20,000 20000

5 20,000 18000