Wayne Enterprises is considering purchasing one of two automation machines available to reduce labor costs: model A or model B. Model A and Model B cost $50 each. Model A generates $100 of savings at the end of the first year and $25 at the end of 2 years. Model B generates $20 at the end of the first year and $112 of savings at the end of 2 years. Wayne Enterprises applies a cost of capital of 12% on both these models. Which of the following statements is correct?

Question 8 options:

	Wayne Enterprises is indifferent at 8.75% and at 12%, model A is better than model B.
	Wayne Enterprises is indifferent at 8.75% and at 12%, model B is better than model A.
	Wayne Enterprises is indifferent at 5.36% and at 12%, model A is better than model B.
	Wayne Enterprises is indifferent at 5.36% and at 12%, model B is better than model A.