Question - Albert Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $69,210 and is expected to save the company $20,400 per year for six years. Machine B costs $95,540 and is expected to save the company $25,400 per year for six years.
Determine the net present value for each machine if the required rate of return is 10 percent. (Ignore taxes.)