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Angler Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more

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Angler Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more efficiently than it is currently equipped to do. Estimates regarding each machine are provided below: Machine A Machine B Original cost $113,200 $269,600 Estimated life 10 years 10 years Salvage value -0- -0- Estimated annual cash inflows $29,800 $60,300 Estimated annual cash outflows $7,600 $15,000 (a) ( 21 otv 20 DOO 000 F4 F3 .*". F5 F6 F7 FB F9 Submission Details HW-Chapter 12 Gabriel Cabrera submitted May 20 at 12:47 am Your answer is correct. Calculate the net present value and profitability index of each machine. Assume an 8% discount rate. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a negative sign preceding the number e.g. -45.35 or parentheses e.g. (45.35).) Machine A Machine B 35763.78 34366.62 Net present value $ $ 1.32 1.13 Profitability index Which machine should be purchased? Angler Corp. should purchase Machine A (11) Angler Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine C is below: Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine $250,400 10 years $29,700 $44,700 $10,000 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a negative sign preceding the number e.g. -45.35 or parentheses e.g. (45.35).) Net present value $ Profitability index

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