Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management. Machine 1 Machine 2 Initial cost $40,750 $50,900 Estimated life 6 years 6 years Salvage value $1,050 $1,550 Estimated annual cash inflows $15,050 $19,900 Estimated annual cash outflows $4,050 $7,200 Click here to view PV table. Calculate the profitability index assuming a 6% discount rate. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answers to 3 decimal places, eg 1.251) Machine 1 Machine 2 Profitability Index Based on your answer, which project should the company choose? Save for Later Attempts: 0 of 1 used Submit Answer