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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: Original

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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: Original Cost Labor per year Maintenance per year Salvage value Machine A $10,000 $2,400 $4,000 $1,600 Machine B $28,000 $4,800 $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. The NPV for Machine A = $ 10 (round your response to the nearest whole number and include a minus sign if necessary). v Screen Shot 2021-10-25 at 10.08.07... Q A 0 Search The NPV for Machine B = $ - 32,993 (round your response to the nearest whole number and include a minus sign if necessary). Using the net present value as the basis of comparing the machines, Tim should recommend Machine A

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