The Equipment Below Is Required for Your Business

The equipment below is required for your business. Assume each will be replaced as it wears out. The required return is 15%. Ignore taxes. Which machine should you buy and why?

A) Machine A because it has a higher NPV.
B) Machine A because it effectively costs less to operate each year.
C) Machine B because it has a higher NPV.
D) Machine B because it effectively costs less to operate each year.
E) Neither, since the NPV for both is negative.