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Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Machine
Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table:
Machine A
Machine B
Original Cost $ $
Labor per year $ $
Maintenance per year $ $
Salvage value $ $
He is told to assume that:
The life of each machine is years.
The company thinks it knows how to make on investments no more risky than this one.
Labor and maintenance are paid at the end of the year.
The NPV for Machine A
The NPV for Machine B
round your response to the nearest whole number and include a minus sign if necessary
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