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The NPV for Machine A = $____ (round your response to the nearest whole number and include a minus sign if necessary) The NPV for

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The NPV for Machine A = $____ (round your response to the nearest whole number and include a minus sign if necessary)

The NPV for Machiene B= $____ (round your response to the nearest whole number and include a minus sign if necessary)

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table Original Cost Labor per year Maintenance per year Salvage value Machine A $15,000 $2,400 $4,000 $2,000 Machine B 24,000 $4,000 $1,200 $7,200 He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 8% on investments no more risky than this one 3. Labor and maintenance are paid at the end of the year

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