Crane 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 here. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Click here to view the factor table. Net present value Machine A Profitability index $77,000 8 years Which machine should be purchased? $19,900 $4,800 Machine A 0 should be purchased. Machine B Calculate the net present value and profitability index of each mabine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 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.) $188,000 8 years 0 $40,200 $9,860 Machine B

Crane Corp. is considering purchasing one of two new diagnostic machines Either machine would male it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates reganding each machine are provided here. Clickhere to view the factor table Calculate the net present value and profitabdity indecof each ma. Wyne. Assume a 9% discount rate of the net present value in nemotive. profitobility indox to 2 decimal places es 1050 . For calculation purposes wne 5 decinal places as displayed in the focther toble proviled]