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Thank you! Machine A Machine B Original cost $76,600 $187,000 Estimated life 8 years 8 years Salvage value Estimated annual cash inflows $20,400 $40,400 Estimated
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Machine A Machine B Original cost $76,600 $187,000 Estimated life 8 years 8 years Salvage value Estimated annual cash inflows $20,400 $40,400 Estimated annual cash outflows $5,190 $10,130 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers for present value to 0 decimal places, e.g. 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 purchasedStep by Step Solution
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