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Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Investment Estimated life Estimated annual cash inflows Estimated
Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Investment Estimated life Estimated annual cash inflows Estimated annual cash outflows Machine A $108,000 10 years $26,700 $5,900 Machine B $155,400 10 years $39,700 $9,900 Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project assuming a 6% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to o decimal places, e.g. 125.) Net Present Value Machine A $ Machine B Which project should the company choose
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