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 isnt equipped to do. Estimates regarding each machine are provided below.

		MACHINE A
Original cost		$75,500		$190,000
Estimated life		8 years		8 years
Salvage value		0		0
Estimated annual cash inflows		$19,600		$40,000
Estimated annual cash outflows		$4,990		$9,970

Calculate the net present value and profitability index of each machine. Assume a 9% discount rate.

		Machine A
Net present value		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places
Profitability index		enter the Profitability index rounded to 2 decimal places

Which machine should be purchased?

select a machine Machine AMachine B should be purchased.