Chapter 25 Homework Question 3 of 5 1.25/5 lesy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Project 22A 23A 24 Investment 5241.900 273,300 282400 Annual Income 517.540 20,750 15.700 Life of Project 6 years years 7 years Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project, Iggy Company uses the straight line method of depreciation Click here to view the actor table Determine the internal rate of return for each project. (Round answers O decimal places, es, 13. For calculation purposes, Lose 5 decimal places as displayed in the factor table provided) Project Internal Rate of Return 22A 1141 23A 11.91 24A MacBook Air Bo s 4 * 5 6 7 3 8 0 9 2 W E 1 R T Y U Your answer is partially correct 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 isn't equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $75,900 $181.000 Estimated life 8 years 8 years Salvage value D Estimated annual cash inflows $39.800 Estimated annual cash outflows $10,050 0 $19.900 $5,020 Click here to view the factor table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Of the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses es (45). Round answer for present value to decimal places, eg 125 and profitability Index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Machine A Machine B Net present value Profitability Index 9132 16837 112 .91 Which machine should be purchased? MacBook Air