Two machines cost $ 40,000 each and are expected to generate the following annual net cash flows: Year Machine X $48,000 1 $14,000 Machine Y $12,000 $48,000 2 $14,000 3 $12,000 4 Total $8,000 $12,000 $12,000 $12,000 Which of the following statements about the present value of the net cash flows of the two machines is correct? O It is the same for both, given any positive rate of discount. O It will be higher for machine X than for machine Y at high rates of discount, and lower for machine X than for machine Y at low rates of discount. O It will be higher for machine X than for machine Y at any positive rate of discount. It will be lower for machine X than for machine Y at any positive rate of discount.

Two machines cost $40,000 each and are expected to generate the following annual net cash flows: Which of the following statements about the present value of the net cash flows of the two machines is correct? It is the same for both, given any positive rate of discount. It will be higher for machine X than for machine Y at high rates of discount, and lower for machine X than for machine Y at low rates of discount. It will be higher for machine X than for machine Y at any positive rate of discount. It will be lower for machine X than for machine Y at any positive rate of discount