2 The following are the cash flows of two projects: 10 points Year Project A Project B 0 $(350) $(350) 1 180 250 2 180 250 3 180 250 4 180 If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Profitability Project Index A 1.5955 X B 1.7455 6 You are operating an old machine that is expected to produce a cash inflow of $6,100 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $21,100 but is much more efficient and will provide a cash flow of $11,650 a year for 4 years. 10 points Calculate the equivalent annual cost of the new machine if the discount rate is 14%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Equivalent annual cost of the purchase price 4,408.38 Should you replace your equipment now? Yes No