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Sunland Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more

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Sunland Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more efficiently than it is currently equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $113,200 $269,600 Estimated life 10 years 10 years Salvage value Estimated annual cash inflows $29,800 $60,300 Estimated annual cash outflows $7,600 $15.000 Calculate the net present value and profitability index of each machine. Assume an 8% discount rate. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places es. 589.71. Enter negative amounts using either a negative sign preceding the number c.g. -45.35 or parentheses e.. (45.35)) Machine A Machine B Net present value S Profitability Index Which machine should be purchased? Sunland Corp. should purchase eTextbook and Media Sunland Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine Cis below. Machine Original cost $250,400 Estimated life 10 years Salvage value $29.700 Estimated annual cash inflows $44700 Estimated annual cash outflows $10,000 Calculate the net present value and profitability Index for Machine C. Use an 8% discount rate. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e s. 589.71. Enter negative amounts using either a negative sin preceding the numbers -45.35 or parentheses es. (45.351) Net present value $ Profitability Index eTextbook and Media Rank the investments based on net present value. Rank Machine A Machine B Machine C Which machine would be chosen based on this calculation? Choose eTextbook and Media Rank the investments based on profitability index. Rank Machine A Machine B Machine C : Which machine would be chosen based on this calculation? Choose Which machine should be purchased based on all the information provided? Discuss your reasons why. should be purchased as it provides the and has the e Textbook and Media

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