Toy Manufacturers (TM) Is Considering Two Mutually Exclusive Machines to Use

Toy Manufacturers (TM) is considering two mutually exclusive machines to use in its manufacturing process. The net cash flows for each are given below: $\begin{array}{lrr}\text { Year } & {\text { Axa }} & \text { Beta } \\0 & -\$ 90,000 & -\$ 105,000 \\1 & 45,000 & 35,000 \\2 & 45,000 & 35,000 \\3 & 45,000 & 35,000\\4&&35,000 \\5&&35,000\end{array}$ If the cost of capital for TM is 13%, which machine should it purchase?

A) Beta, because it has the higher total net cash flows.
B) Beta, because it has the higher NPV.
C) Axa, because it has the higher NPV using infinite replacement.
D) Beta, because it has the higher NPV using infinite replacement.