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Use the following information to determine which machine to purchase based on net present value. Machine 1 - Initial investment 225,000; Annual cash flows; 50,000

Use the following information to determine which machine to purchase based on net present value.

Machine 1 - Initial investment 225,000; Annual cash flows; 50,000 Useful lives; 5 years

Machine 2 - initial investment 235,000; annual cash flows; 50,000 useful lives; 4 years

Machine 3 - initial investment; 210,000; Annual CF; 50,000 Useful lives; 8 years

Cost of Capital is 10%.

A) purchase machine 3

B) purchase machine 2

C) purchase machine 1

D) purchase any of the three machines

E) purchase all three machines

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