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 78,000 184,000

estimated life 8 years 8 years

salvage value 0 0

Estimated annual cash inflows. $19,800 $40,300

Estimated annual cash outflows. $4,820 $10,160

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