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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 Bd 8 juu 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 Bd 8 juu that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $77,500 $186,000 Estimated life 8 years 8 years Salvage value Estimated annual cash inflows $19,500 $39,600 Estimated annual cash outflows $5,040 $9,800 Click here to view PV 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 eg45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calaulation purposes, use 5 decimal places as displayed in the factor table provided.) Machine B Machine A Net present value Profitability index Which machine should be purchased? 1219 PM 11/30/2015

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