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Exercise 25-04 (Video) Bonita Corp. is considering purchasing one of two new diagnostic machines. Enther machine would make it possible for the company to bid

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Exercise 25-04 (Video) Bonita Corp. is considering purchasing one of two new diagnostic machines. Enther 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 577,500 $186,000 Estimated 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $19,500 $39,600 Estimated annual cash outflows $5,040 $9,500 Click here to view.pV_table Calculate the net present value and profitability index of each machine. Assume a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the num 19-45 or parentheses eg (45). Round answer for present value to decimal places, ... 125 and profitability Index to 2 decimal places, ... 10.50. For calculation purposes decimal places as displayed in the factor table provided) Machine A Machine Net present value I Profitability index Which machine should be purchased? . should be purchased

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