Tim Smunt has been asked to evaluate two machines. After some? investigation, he determines that they have the costs shown in the following? table:
Machine A Machine B
Original Cost $12,000 $28,000
Labor per year $2,000 $4,800
Maintenance per year $4,600 $1,200
Salvage value $2,400 $7,200
He is told to assume? that:
1. The life of each machine is 33 years.
2. The company thinks it knows how to make 14?% on investments no more risky than this one.
3. Labor and maintenance are paid at the end of the year.
The NPV for Machine A = ?$ ?(round your response to the nearest whole number and include a minus sign if? necessary).
The NPV for Machine B=? $?(round your response to the nearest whole number and include a minus sign if? necessary).