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Two alternative machines, A and B, as being considered as replacements for an older, worn-out machine....

Two alternative machines, A and B, as being considered as replacements for an older, worn-out machine. The cash flows for the two mutually exclusive alternatives are presented in the following table; the MARR is 12%. Select the best alternative using the NPV criterion.

End of Year Machine A Machine B

0 -$20,000 -$28,000

1 $ 4,864 $8,419

2 $ 4,864 $8,419

3 $ 4,864 $8,419

4 $ 4,864 $8,419

5 $ 4,864 $8,419

6 $ 4,500 $8,419

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