Rogers Printing Pty Ltd Is Considering Purchasing One of Two

Rogers Printing Pty Ltd is considering purchasing one of two new printing machines to use at its Nowra factory.The Megaprinter 3000 costs $580,000 and is expected to have net cash flows of $43,000 per year for six years at which time it is considered worthless.The Liteprinter 409 costs
$450,000 and is expected to have net cash flows of $32,500 per year for four years at which time it is considered worthless.Both machines perform the same function.The appropriate discount rate for the company is 10%.Based on an NPV analysis what should Rogers Printing do?

A) The company should buy the Megaprinter 3000.
B) The company should buy the Liteprinter 409
C) Both have negative NPVs and therefore both should be rejected.
D) We do not have any information on revenues and therefore cannot make a decision.