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Lily Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more

Lily Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more efficiently than it is currently equipped to do. Estimates regarding each machine are provided below: Machine A Machine B Original cost Estimated life $113,800 $267,500 10 years 10 years Salvage value -0- -0- Estimated annual cash inflows $30,100 $60,000 Estimated annual cash outflows $7,400 $15.200 Lily Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine C is below: Machine C Original cost $253,400 Estimated life 10 years Salvage value $30,000 Estimated annual cash inflows $45,400 Estimated annual cash outflows $9,900 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 2 decimal places eg. 589.71. Enter negative amounts using either o negative sign preceding the number eg.-45.35 or parentheses eg. (45.35)) Net present value Profitability index eTextbook and Media

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