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Exercise 177 KSU Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on

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Exercise 177 KSU 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. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine A $106,000 8 years 0- Machine B $175,000 8 years $30,000 $45,000 $10,000$15,000 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and net present value to the nearest whole dollar, e.g. 5,275 and profitability index to 2 decimal places, e.g. 15.25.) Machine A Machine B Net present value Profitability index Which machine should be purchased

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