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Oriole Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that
Oriole 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 576,600 $179.000 Byears 8 years Original cost Estimated life Salvage value Estimated annual cash infoms Estimated annual cash outfioms 0 0 $19.900 540400 $4890 59.940 Click here to view PV table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate of the net present value is negative we either a negative sin preceding the number os 45 or parentheses (451. Round answer for present value to decimal places, s 125 and profitability Index to 2 decimal places, es 10.50. For calculation purposes, use decimal places as deployed in the factor table provided) Machine A Machine B Net present value Profitability index Which machine should be purchased
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