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please send the full picture BAK Corp is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company
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BAK 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 below Machine A Original cost Machine B $190,000 $76,600 Estimated life 8 years 8 years 0 0 Salvage value Estimated annual cash inflows Estimated annual cash outflows $20,000 $40,500 $5,140 $10,100 Click here to view the factor table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate of the net present value is negative, use either a negative sin preceding the number eg -45 or parentheses es (45. Round answer for present value to decimal places es. 125 and profitability index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Machine A Machine B Net present value Profitability index Which machine should be purchased? Machine A should be purchased Step by Step Solution
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