Ivanhoe 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 here. Machine A Machine B Original cost $76,600 $190,000 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $20,000 $40,500 Estimated annual cash outflows $5,140 $10,100 TABLE 3 Present Value of 1 (11) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 95238 94340 0.93458 92593 .91743 2 .92456 90703 89000 0.87344 85734 90909 84168 .82645 .81162 90090 89286 .86957 79719 .75614 3 88900 86384 83962 0.81630 .79383 .77218- .75132 .73119 71178 .65752 4 85480 82270 .79209 0.76290 .73503 70843 68301 65873 .63552 57175 5 82193 .78353 74726 0.71299 .68058 64993 .62092 59345 36743 49718 .79031 74622 .70496 0.66634 63017 59627 56447 53464 50663 43233 .75992 .71068 66506 0.62275 58349 54703 51316 48166 45235 37594 73069 67684 .62741 0.58201 54027 50187 46651 43393 40388 32690 9 .70259 64461 59190 0.54393 50025 46043 42410 39092 36061 .28426 10 67556 .61391 55839 0.50835 46319 42241 38554 35218 32197 24719 11 649581 58468 52679 0.47509 4288838753 35049 31728 28748 21494 12 .62460 55684 49697 0.44401 39711 35554 31863 28584 25668 .18691 13 60057 53032 46884 0.41496 36770 32618 28966 25751 22917 16253 14 57748 50507 44230 0.38782 34046 29925 26333 23199 20462 14133 15 55526 48102 41727 0.36245 31524 27454 23939 20900 18270 12289 16 53391 45811 39365 0.33873 29189 25187 21763 18829 16312 10687 17 51337 43630 37136 0.31657 27027 23107 19785 .16963 14564 09293 18 49363 41552 35034 0.29586 25025 21199 17986 15282 13004 .08081 19 47464 39573 33051 0.27615 23171 19449 16351 13768 11611 07027 20 45639 37689 31180 0.25842 21455 17843 14864 .12403 .10367 06110 Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. If the net present value is negative, use elther a negative sign preceding the number eg-45 or parentheses eg (45). Round answer for present value to O decimal places, eg. 125 and profitability Index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine A Net present value Profitability index Which machine should be purchased? Machine A should be purchased. eTextbook and Media Machine B