Darren and turf and carpet is considering an investment in one of two machines so machine will increase productively from sewing 110 baseballs Broward to sewing 198 per hour

Net Present Value Method and Present Value Index Diamond and Turf Inc. is considering an investment in one of two machines. The $0.46 per baseball. Assume that any increased production of basebals can be sold. The second machine is an sewing machine will increase productivity from sewing 110 bauebals per hour to sewing 198 per hour. The contribution margin per unit is second machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cast. The labor 44,900, have an eightyear sre, and we operate for 1,400 heur, per year. The pad ng machne- cost 591,700, have an eghtver re and cost saved is equivalent to $19 per hour. The sewing machine will cost $2 operate for 1,200 hours per year. Dlamond and Turf seeks a minimum rate of return of Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 .909 0.893 0.870 0.833 2 1.833 1.736 69 1.626 1.528 3 2.673 2487 2402 2283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 .111 3.78S 3.326 7 5.582 .868 .564 .160 60 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.7724,031 10 7.360 6.145 5.65o 5.019 4.192 a. Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above. Round to the nearest dolar Packing Mac Sewing Machine Present value of annual net cash fows Amount to be invested Net present value required, round your answers to two decimal places b. Determine the present value index for the two machines. If required, round your answers to two one of two macines. Tne sewing machine will lncrease proau $0.46 per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic cost saved is equivalent to $19 per hour. The sewing machine will cost $244,900, have an eight-year life, and will operat operate for 1,200 hours per year. Diamond and Turf seeks a minimum rate of return of 12% on its investments. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.8552.589 5 4.212 3.7913.605 3.353 2.991 4.917 4.355 4.1 3.785 3.326 6 >7 558.868 4564 4.160 3.605 7 5.582 .868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above. Rou Sewing MachinePacking Machine Present value of annual net cash flows Amount to be invested Net present value b. Determine the present value index for the two machines. If required, round your answers to two decimal places. Packing Machine Sewing Machine Present value index