3/5 E Question 2 of 5 BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bidon jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine A $77,300 8 years 0 $20,200 $4,970 Machine B $180,000 8 years 0 $40,000 $9.860 Click here to view the factor table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses es (45). Round answer for present value to decimal places, eg. 125 and profitability index to 2 decimal places. eg 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine Chapter 25 Homework Question 2 of 5 3/5 E walah utflow 5420 59850 Click here to view the corte Calculate the present value and profitability index of each mache.discount at the present values ove, theregte ding the number 45 or procesi Round answer for present aller to decinal places es 125 and pershtability Index to decimal pues es 10.50. Fortion purposeswe decimal slices as declared in the factor table provided Machine Machine Nepresenta Potability index 5601 With should be purchased should be purchase Tooth 3 3/5 E Question 2 of 5 BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bidon jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine A $77,300 8 years 0 $20,200 $4,970 Machine B $180,000 8 years 0 $40,000 $9.860 Click here to view the factor table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses es (45). Round answer for present value to decimal places, eg. 125 and profitability index to 2 decimal places. eg 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine Chapter 25 Homework Question 2 of 5 3/5 E walah utflow 5420 59850 Click here to view the corte Calculate the present value and profitability index of each mache.discount at the present values ove, theregte ding the number 45 or procesi Round answer for present aller to decinal places es 125 and pershtability Index to decimal pues es 10.50. Fortion purposeswe decimal slices as declared in the factor table provided Machine Machine Nepresenta Potability index 5601 With should be purchased should be purchase Tooth 3
