Savo company Ltd is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on job that it currently isn't equipped to do. Estimates regarding each machine are provided below.

	Machine A	Machine B
initial investment	$2,500,00	$1,400,000
Estimated useful life	20 years	20 years
Annual cash inflows	$550,000	$$430,000
Annaul cash outflows	$222,250	$206,350
Discount rate	9%	9%

Required

Calculate Cash Payback period

Calculate NPV

Calculate Profitability index (PI)

Based on your above analysis which machine would Savo Company Ltd purchase, provide reasons for your choice.