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Your buddy in mechanical engineering has invented a money machine. The main drawback of the...

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Finance

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Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $200 However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $2,000 to build. Your buddy wants to know if he should invest the money to construct it. lf the interest rate is 3.5% per year, what should your buddy do? The NPV of the machine is (Round to the nearest dollar.) What should your buddy do? (Select the best choice below.) o A. O B. O c. O D. Accept the machine because the NPV is equal to or greater than $0. Accept the machine because the NPV is equal to or less than $0. Reject the machine because the NPV is less than so. Reject the machine because the NPV is equal to or greater than SO

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