Ginger Company Is Contemplating Acquiring One of the Following Machines

Ginger Company is contemplating acquiring one of the following machines: $\begin{array}{lll}&\text { M achine } A&\text { M achine } B\\\text { Initial investment } & \$ 180,000 & \$ 225,000 \\\text { Additional annual: } & & \\\text { R evenues } & \$ 90,000 & \$ 150,000 \\\text { Cash expenses } & \$ 25,000 & \$ 85,000\\\text { Terminal salvage value } & -0- & -0- \\\text { Estimated useful life }& 5 \text { years } & 5 \text { years } \\\text { Minimum desired rate } \\\text { of return }& 14 \% & 14 \%\end{array}$ Assume straight- line depreciation and ignore income taxes. Required:
Calculate the net present value for both machines and choose the best alternative.