Mrs Leskoshe Vp Operations Adm Make Decision Two Investment Alternatives First Investment Q34195550

Mrs.​ Leskoshe, VP of operations at​ ADM, has to make a decisionbetween two investment alternatives. First investment is to investon​ Machine-A and second investment is to invest on​ Machine-B.Mrs. Leskoshe asked the operations manager Tim Long to providenecessary information for evaluating the two alternatives. Aftersome​ research, Tim Long produces necessary information in thefollowing​table:                                            

Machine A

Machine B

Initial Cost

$10,000

$28,000

Labor cost per year

$2,000

$4,400

Maintenance cost per year

$4,600

$800

Salvage value

$1,600

$7,000

It is also assumed​ that, a) the life of each machine is 3​years, and​

b) the company thinks it knows how to make 14​% on investmentsno more risky than this one.

1.) The net present value​ (NPV) for Machine A

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