The Ren Co is submitting a bid to renovate the school building for Skaters School for the next 4 years. Ted Baker, the CEO, has two technology options to complete the work under the contract: 5019 Machine A has an installed cost of $50,000 but is expected to generate operating cash flows of $20,000 a year for 4 years. After 4 years, the machine has no salvage value. Ignore any tax impact of salvage. Machine B has only a 2-year lifetime and its installed cost is $30,000. For the 2 years it is expected to produce operating cash flows of $20,000 a year. It can be replaced after two years at the same initial cost. Machine B have no salvage value and ignore the tax impact of salvage. (C The cost of capital for Ren Co is 12%. Calvino A Using the replacement chain approach to compute the NPV of each project, which project has the highest NPV and by how much? di at ONT IOS 0 S102 mol 1854 vieve aonaiguis te bo namuo bloz A) A Machine B has a higher NPV by $725. buborg to sees optive magnB) Machine B has a higher NPV by $345. I tol sunslein doss Hoe of C) sd Machine A has a higher NPV by $2,847. Ex(M+I-MOI)| TASY D) *Machine A has a higher NPV by $3,916. asdysg a svad of The two projects have equal NPV. E) 24 UK 22 25. Which project has the highest equivalent annual NPV and by how much? Project 2 has a higher equivalent annual NPV by $1,120. Project 2 has a higher equivalent annual NPV by $1,241. *Project 1 has a higher equivalent annual NPV by $1,289...8% Project 1 has a higher equivalent annual NPV by $1,960. SE The two projects have equal equivalent annual NPV. YY Isbom di 18 gnidion has 1899 jel sdy to be ad agnivse A) B) C) E) to 21697