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CALCULATOR FULL SCREEN PRINTER VERSION BACK RET Exercise 24-4 BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine it currently isn't

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CALCULATOR FULL SCREEN PRINTER VERSION BACK RET Exercise 24-4 BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine it currently isn't equipped to do. Estimates regarding each machine are provided below. would make it possible for the company to bid on jobs that Machine A $76,700 8 years Machine B $188,000 8 years Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows $20,100 $40,200 $10,130 $4,910 present value is negative, use Calculate the net present value and profitability index of each machine. either a negative sign preceding the number 125 and profitability index to 2 decimal pl table provided.) Assume a 9% discount rate. (ir the net eg -45 or parentheses eg (45). Round answer for aces, e.g. 10.50. For calcul lation purposes, use 5 decimal places as displayed in the factor Machine B Profitability index Which machine should be purchased? should be purchased 22168 JUN 9

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