Net Presens Valies Method and Pregent Yove index: Dumond and Turt inc. is cocidering on investmera in one of kng machinet, The sewing machine will inorease productivity from seming 110 timebats per haur tie stwing 198 per houc the contrbusion maryin ber unit is 40.4 per basethal. Assume that any increased productoon of basibels can be sels. The second machine is an a.tomatic: pocking machine tor the goif bwi line. The packing machine wil reduce pocking labor cost. The iabor cost saved is equivaint to s27 per. hour. The sening machine wil cost 5190,200 , hove an eight-year life, and will operate for 1,400 hoors per year, the packing mechine aill cost 5119,200, have an eight-year life; and anili operath for c. It Diamand and Turf has sufficient funds for only one of the machines and qualtative factors are wequer wemwnow the two machines, in which machite yhoult it in at both present value indeves are the same, either machine will grade as correct.)