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. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine A $76,100 8 years 0 $19.900 $5,140 Machine B $184,000 8 years 0 $40,300 $10,130 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 either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 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 A Machine B Net present value Profitability index Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses eg (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 A Machine B Net present value Profitability index Which machine should be purchased? should be purchased TABLE 1 Future Value of 1 (n) Periods 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 4% 1.00000 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 1.53945 1.60103 1.66507 1.73168 1.80094 1.87298 1.94790 2.02582 2.10685 2.19112 5% 1.00000 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 1.71034 1.79586 1.88565 1.97993 2.07893 2.18287 2.29202 2.40662 2.52695 2.65330 6% 1.00000 1.06000 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59385 1.68948 1.79085 1.89830 2.01220 2.13293 2.26090 2.39656 2.54035 2.69277 2.85434 3.02560 3.20714 7% 1.00000 1.07000 1.14490 1.22504 1.31080 1.40255 1.50073 1.60578 1.71819 1.83846 1.96715 2.10485 2.25219 2.40985 2.57853 2.75903 2.95216 3.15882 3.37993 3.61653 3.86968 8% 1.00000 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 9% 1.00000 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 10% 1.00000 1.10000 1.21000 1.33100 1.46410 1.61051 1.77156 1.94872 2.14359 2.35795 2.59374 2.85312 3.13843 3.45227 3.79750 4.17725 4.59497 5.05447 5.55992 6.11591 6.72750 11% 1.00000 1.11000 1.23210 1.36763 1.51807 1.68506 1787041 21.07616 2.30454 2.55803 2.83942 3.15176 3.49845 3.88328 4.31044 4.78459 5,31089 5.89509 6,54355 7126334 8.06231 12% 1.00000 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4.88711 5.47357 6.13039 6.86604 7.68997 8.61276 9.64629 15% 1.00000 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 16 17 18 19 20 TABLE 2 Future Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.1 1000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4,64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 7 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14,20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 12 15 02581 15.91713 16.86994 17.8885 18.97713120.1407221.384282271319 24.1331329.00167 6 7 8 9 10 11 12 13 14 15 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 23.69751 25.84037 28.21288 30.8402 33.7502336.97351 40.54470 44.50084 48.88367 65.07509 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.74972 75.83636 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 16 17 18 19 20 TABLE 3 Present Value of 1 Periods 1 2 3 4 5 6 7 8 9 10 8% .92593 .85734 79383 .73503 .68058 12% .89286 79719 .71178 .63552 .56743 4% .96154 92456 .88900 .85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62460 .60057 .57748 .55526 .53391 .51337 .49363 .47464 .45639 5% .95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 48102 .45811 .43630 41552 .39573 .37689 6% .94340 .89000 .83962 .79209 74726 .70496 .66506 .62741 .59190 55839 .52679 .49697 .46884 44230 .41727 .39365 .37136 .35034 .33051 131180 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 9% .91743 .84168 .77218 70843 .64993 .59627 .54703 .50187 .46043 .42241 -38753 -35554 .32618 .29925 27454 25187 23107 21199 .19449 .17843 .63017 58349 .54027 -50025 .46319 .42888 .39711 .36770 .34046 31524 .29189 27027 .25025 23171 21455 10% 190909 .82645 .75132 .68301 .62092 .56447 .51316 .46651 42410 38554 .35049 31863 .28966 .26333 .23939 21763 .19785 .17986 .16351 .14864 11% .90090 .81162 73119 .65873 .59345 .53464 .48166 .43393 39092 35218 31728 28584 .25751 23199 20900 .18829 .16963 .15282 .13768 .12403 11 12 13 14 15 15% .86957 .75614 .65752 57175 .49718 .43233 .37594 32690 28426 24719 21494 .18691 .16253 .14133 .12289 .10687 .09293 .08081 .07027 .06110 .50663 45235 40388 36061 .32197 28748 -25668 .22917 20462 .18270 .16312 .14564 .13004 .11611 .10367 16 17 18 19 20 8% TABLE 4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 96154 95238 .94340 0.93458 1.88609 1.85941 1.83339 1.80802 2.77509 2.72325 2.67301 2.62432 3.62990 3.54595 3.46511 3.38721 4.45182 4.32948 4.21236 4.10020 6 5.24214 5.07569 4.91732 4.76654 6.00205 5.78637 5.58238 5.38929 8 6.73274 6.46321 6.20979 5.97130 9 7.43533 7.10782 6.80169 6.51523 10 8.11090 7.72173 7.36009 7.02358 11 8.76048 8.30641 7.88687 7.49867 12 9.38507 8.86325 8.38384 7.94269 13 9.98565 9,39357 8.85268 8.35765 14 10.56312 9.89864 9.29498 8.74547 15 11.11839 10.37966 9.71225 9.10791 16 11.65230 10.83777 10.10590 9.44665 17 12.16567 11.27407 10.47726 9.76322 18 12.65930 11.68959 10.82760 10.05909 19 13.13394 12.08532 11.15812 10.33560 20 13.59033 12.46221 11.46992 10.59401 .92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 9% 10% 91743 90909 1.75911 1.73554 2.53130 2.48685 3.23972 3.16986 3.88965 3.79079 4.48592 4.35526 5.03295 4.86842 5.53482 5.33493 5.99525 5.75902 6.41766 6.14457 6.80519 6.49506 7.16073 6.81369 7.48690 7.10336 7.78615 7.36669 8.06069 7.60608 8.31256 7.82371 8.54363 8.02155 8.75563 8.2 0141 8.95012 8.36492 9.12855 8,51356 11% 90090 1.71252 2.44371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 7.83929 7.96333 12% .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 6,81086 6.97399 7.11963 7.24967 7.36578 7.46944 15% .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95424 6.04716 6.12797 6.19823 6.25933