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tlc corp is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that
tlc 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. Machine A Machine B Original cost 78,000 190,000 Estimated Life 8yrs 8yrs Savage value 0 0 Estimated nnual cash inflows 20,000 40,000 Estimated annual outflows 5,000 9,000 Calculate the net present value and the profitability index of each machine. Assume a 9% discount rate. (Round net present value to 0 decimal places ) Machine ANet present Value$ Profitiability index Machine BNet present Value$ Profitiability index Which machine should be purchased? Machine A Machine B
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