Capital Budgeting. A firm has the following two mutually exclusive investment opportunities A: Buy m

Capital Budgeting. A firm has the following two mutually exclusive investment opportunities A: Buy machine A which costs $200 today, it can generate $20 a year for 15 years with no salvage value. (The profits start from year 1 to year 15) B: Buy machine B which costs $220 today, it can generate $25 a year for 12 years with a salvage value of $30 at the end of the 12th year. In both cases, the profits start from year 1. Assume the discount rater is 3%. Please find out the NPV of both machines and make the optimal investment decision. 3.1. For machine A, NPVA = $ [Select] 3.2. For machine B. NPV8 = $ (Select] B: Buy machine B which costs $220 today, it can generate $25 a year for 12 years with a salvage value of $30 at the end of the 12th year. In both cases, the profits start from year 1. Assume the discount rater is 3%. Please find out the NPV of both machines and make the optimal investment decision. 3.1. For machine A, NPVA = $(Select] 3.2. For machine B, NPVB = $ (Select] 3.3. If machine A and B are mutually exclusive, your decision should be Choosing machine A