Current Attempt in Progress Your answer is incorrect. Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $173,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $33,228. Click here to view PV table. What is its approximate internal rate of return? (Round answer to decimal place, ag. 125.) Internal rate of return % Current Attempt in Progress 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 $76,600 $190,000 Estimated life 8 years 8 years Salvage value 0 0 $20,000 $40,500 Estimated annual cash inflows Estimated annual cash outflows $5,140 $10,100 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate (If 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 O 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 Which machine should be purchased? should be purchased. Current Attempt in Progress Hillsong Inc manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2,45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $241,533. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $389,600 2 399,600 3 410,800 4 426,000 5 433,300 6 434,600 7 436,700 The new sewing machine would be depreciated according to the declining balance method at a rate of 20%. The salvage value is expected to be $379,000. This new equipment would require maintenance costs of $95,500 at the end of the fifth year. The cost of capitalis 9% Click here to view PV table Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number o.s. -45 or parentheses es.(45). Round present value answer to decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value Determine whether Hillsong should purchase the new machine to replace the existing machine