Bonita 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		$78,200		$190,400
Estimated life		8 years		8 years
Salvage value		0		0
Estimated annual cash inflows		$23,300		$40,500
Estimated annual cash outflows		$4,800		$8,900

Note: for calculation purposes use 5 decimal places as displayed in the factor table provided eg.1.12345.If the net present value is either use a negative sign or bracket. The round final answer to 0 decimal point.

Assume the discount rate is 10%.

Calculate net present value for Machine A and B.

Calculate profatibility index for Macine and B.

Which machine should be purchased?