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		Machine B
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		$9,97 0

le 3 Present Value of 1 n) 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% riods 1 96154 95238 94340 93458 92593 9174390909 90090 .89286 86957 .92456 .88900 90703 86384 .89000 .83962 87344 .81630 .85734 79383 84168 77218 82645 75132 .81162 73119 79719 71178 .75614 .65752 .85480 .82270 79209.76290 73503.70843 .68301.65873 .63552 .57175 .82193 78353.74726 71299.68058 .64993.62092 59345.5674349718 7 9 10 11 12 13 14 15 16 17 18 .79031 .74622 70496 66634 .63017 .59627 .56447.53464 50663 43233 75992 71068.66506 .62275 .58349.54703 .51316 48166 45235 .37594 .73069.67684.62741 58201 54027 50187 46651 4339340388 32690 .70259.64461 .59190.54393 .5002546043 42410 39092.36061 28426 .67556 .61391 .55839 .50835 46319 42241 38554 .35218 32197 24719 .64958.58468.52679 .47509 .42888 38753 .35049 .31728 28748 21494 .62460.55684 .49697 44401 39711 35554 31863 28584 25668 .18691 .60057.53032 46884 41496 3677032618 28966 25751 22917 .16253 .57748 .50507 44230 .38782 .34046 29925 26333 23199 20462 .14133 .55526 48102 41727 .36245 31524 27454 23939 20900 .18270 .12289 .53391 45811 39365 .33873 29189 .25187 21763.18829 .16312 .10687 .51337 43630 37136 31657 27027 23107 .19785 .16963 .14564 .09293 49363 41552 .35034 29586 25025 .21199 .17986 .15282 .13004 .08081 .47464.39573 33051 .27615 .23171 .19449 .16351 .13768 .11611 07027 .4563937689 31180 25842 21455 .17843.14864.12403.10367.06110 20 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, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine A Machine B Net present value 4882|| 205071 Profitability index 1.06 -1.07