Toy Manufacturers (TM) is considering two mutually exclusive machines to use in its manufacturing process. The net cash flows for each are given below: Year Axa Beta 0 -$90,000 -$105,000 1 45,000 35,000 2 45,000 35,000 3 45,000 35,000 4 35,000 5 35,000 If the cost of capital for TM is 13%, which machine should they purchase?

Beta: has the highest total net cash flows Beta: it has the highest NPV Axa: it has the highest NPV using infinite replacement Beta: it has the highest NPV using infinite replacement