Albert Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $68,660 and is expected to save the company $20,130 per year for six years. Machine B costs $95,160 and is expected to save the company $25,130 per year for six years. Determine the net present value for each machine if the required rate of return is 13 percent. (Ignore taxes.) Solution PV = cashflow/(1+i)^n i = .13 or 13%, n = number of compoundings NPV = present value of all cash inflows - intial investment NPV of macine A: Machine B: .