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.

A

B

original cost

$78,330

187,300

estimated life

8

8

salvage value

0

0

estimated annual cash inflows

19,520

40,290

estimated annual cash outflows

4,970

10,100

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