WileyPLUS Problem 13-3

Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows:

		Machine A			Machine B
Investment		$108,200			$155,700
Estimated life		10 years			10 years
Estimated annual cash inflows		$26,900			$39,300
Estimated annual cash outflows		$6,300			$9,900

Salvage value for each machine is estimated to be zero. view PV table. Calculate the net present value of each project assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.)

		Net Present Value
Machine A		$
Machine B		$

Which project should the company choose?