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Riverbed Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that
Riverbed 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. Click here to view PV tables. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (Round net present value to the nearest whole dollar, e.g. 5,275 and profitability index to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuity of 1 (n) TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1
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