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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 Machine B Original cost $76,600 $190.000 Estimated life 8 years 8 years Salvage value Estimated annual cash inflows $20,000 $40.500 Estimated annual cash outflows $5,140 $10,100 0 0 Click here to view the factor 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 sin preceding the number eg 45 or parentheses es (45). Round answer for present value to decimal places, 4.125 and profitability index to 2 decimal places, es 10.50. For calculation purposes, use 5 decimal places as displayed in the factor totale provided) Machine A Machine B Net present value Prohtability index 107 0.88 Which machine should be purchased? Machine A should be purchased

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