You are considering two machines. A and B that can be used for the same purpose. Machine A costs 250,000, will reduce costs by 75,000 I think this should have been 70.000 to get the answers) per year needs working capital of 20,000 at time zero which will be release at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the projects life for 50,000. Machine B costs 320,000 will reduce costs by 70,000 per year, has net working capital of 40,000 at time zero will be released at the end of its life, You are considering two machines. A and B that can be used for the same purpose. Machine A costs 250,000, will reduce costs by 75,000 I think this should have been 70.000 to get the answers) per year needs working capital of 20,000 at time zero which will be release at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the projects life for 50,000. Machine B costs 320,000 will reduce costs by 70,000 per year, has net working capital of 40,000 at time zero will be released at the end of its life