Holder Manufacturing Is Considering Purchasing Two Machines Holder Manufacturing Uses the Net Present Value Method to Make

Holder Manufacturing is considering purchasing two machines. Each machine costs $8,000 and will produce cash flows as follows:
$\begin{array}{rrr}\text { End of } & \text { Machine }\\\text { Year } &A&B\\1 & \$ 5,000 & \$ 1,000 \\2 & 4,000 & 2,000 \\3 & 2,000 & 11,000\end{array}$
Holder Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Holder purchase?

A) Only Machine A is acceptable.
B) Only Machine B is acceptable.
C) Both machines are acceptable, but A should be selected because it has the greater net present value.
D) Both machines are acceptable, but B should be selected because it has the greater net present value.
E) Neither machine is acceptable.