Woody Manufacturing Inc. is considering the purchase of a new machine. They have narrowed their choices down to two machines, Machine #1 and Machine #2, each having a cost of $35,000. The following information is available regarding the expected cash inflows from each machine:

Year	Machine #1	Machine #2
1	$14,000	$42,000
2	14,000	0
3	14,000	0

When using net present value analysis, Woody uses the same cost of capital for both machines and both machines have a positive net present value.

Based on the above information, which of the following statements is true?

Answer

	a.	Machine #1 will have a higher net present value than Machine #2.
	b.	Machine #1 will have a lower net present value than Machine #2.
	c.	Machines #1 and #2 will have the same net present values.
	d.	Machines #1 and #2 will have the same internal rates of return