Exercise 13.16 TLC 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 is not equipped to do. Estimates for each machine are as follows: Machine A Machine B Original cost $77,800 $190,300 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $23,500 $39,500 Estimated annual cash outflows $5,200 $8,850 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 10% discount rate. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Round profitability index answers to 3 decimal places, e.g. 12.521.) ne A ne B Net present value $ $ Profitability index Which machine should be purchased? WileyPLUS Problem 13-3 Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Investment Estimated life Estimated annual cash inflows Estimated annual cash outflows Machine A $108,600 10 years $26,700 $6,200 Machine B $155,800 10 years $39,100 $9,900 Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project assuming a 6% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net Present Value Machine A $ Machine B $ Which project should the company choose