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BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that

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BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine A $75,900 Machine B $181,000 Original cost Estimated life Salvage value 8 years 8 years 0 0 Estimated annual cash inflows $19,900 $39,800 Estimated annual cash outflows $5,020 $10,050 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate.(the net present value is negative use either a negative sign preceding the rumber eg -45 or parentheses es (45). Round answer for present yolue to O decimal places os 125 and profitability index to 2 decimal places es. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor talle provided) Machine A Machine B Net present value Profitability index Click here to view PV table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate of the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses es (45). Round answer for present value to 0 decimal places, eg. 125 and profitability index to 2 decimal places, ag. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Machine A Machine B Net present value Profitability index Which machine should be purchased? should be purchased eTextbook and Media Sofort Attempts: 0 of 3 used Submit

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