Question

A- PW for machine A=-1426

B- PW for machine B= -436.34

C- PW for machine C =-16538.70

Question : D- Based on the PW value you got in the previous questions, which machine we should select?

Answer 1

The firm should choose production technology 2 since it has the lowest total cost.

Step-by-step explanation:

The firm should choose production technology 2 since it has the lowest total cost. Because the cost of machines increased (relative to the previous question), you would expect a shift toward less capital and more labor.