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Exercise 25-04 BAK 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 25-04 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 isnt equipped to do. Estimates regarding each machine are provided below Machine B $183,000 3 years Machine A Original cost $74,500 Estimated life 8 years Salvage value Estimated annual cash inflows $20,300 Estimated annual cash outflows $5,100 $40,200 39,810 Click here to view the factor table Calculate the net present value and profitability Index of each machine. Assume a 9% discount rate. (If the net present varies negative, se either a negative slan preceding the number og -45 or parentheses eg (45). Round answer for present value to decimal places 0.125 and profitability Index to 2 decimal places, 10.50. For calculation purposes, uses decimal places as displayed in the factor table provided.) Machine A Machine Net present value Profitability Index Which machine should be purchased? should be purchased

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