Bonita Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine C is below:

Machine C

Original cost $253,300

Estimated life 10 years

Salvage value $30,000

Estimated annual cash inflows $45,300

Estimated annual cash outflows $9,900

Calculate the net present value and profitability index for Machine C. Use an 8% discount rate. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a negative sign preceding the number e.g. -45.35 or parentheses e.g. (45.35).)

Net present value $

Profitability index

Rank the investments based on net present value.

Rank

Machine A

Machine B

Machine C

Which machine would be chosen based on this calculation?

Rank the investments based on profitability index.

Rank

Machine A

Machine B

Machine C

Which machine would be chosen based on this calculation?