Question - Albert Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $69,950 and is expected to save the company $20,180 per year for six years. Machine B costs $95,200 and is expected to save the company $25,180 per year for six years.
Determine the net present value for each machine if the required rate of return is 13 percent. (Ignore taxes.).