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 is not equipped to do. Estimates for each machine are as follows: Machine A Machine B $77,700 $190,000 8 years 8 years Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows 0 $24,600 $40,100 $5,000 $8,950 Click here to view PV table Calculate the net present value and profitability index of each machine. Assume a 10% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg.-45 or parentheses es (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e$. 1.25124 and final answers to decimal places, eg. 5,275. Round profitability index answers to 3 decimal places, eg. 12.521.) Click here to view PV table. Calculate the net present value and profitability Index of each machine. Assume a 10% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg. 45 or parentheses es: (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e1.25124 and final answers to decimal places, eg. 5,275. Round profitability index answers to 3 decimal places, eg. 12.521) Machine A Machine B Net present value $ Profitability index Which machine should be purchased? than 5% ure Value of a Single Sum) FVF, = (1+1) (n) Periods 2% 2.5% 3% 4% 6% 8% 9% 10% 11% 12% 15% 1 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 2 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.16640 1.18810 121000 1.23210 1.25440 1.32250 3 1.06121 1.07689 109273 1.12486 1.15763 1.19102 1.25971 1.29503 133100 1.36763 1.40493 1.52088 4 1.08243 1.10381 1.12551 1.16986 1.21551 126248 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 5 1.10408 1.13141 1.15927 1.21665 1.27628 133823 1.46933 1.53862 1.61051 1.68506 170234 2.01136 6 1.12616 1.15969 1.194051 28532 1.34010 1.41852 158687 1.67710 1.77156 1.87041 1 97382 2.31306 7 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 171382 1.82804194872 207616 221068 266002 8 1.17168 121840 1.26677 136857 147746 159385 1.85093 1.99256 2.14359 230454 247596 3.05902 9 1.19500 124886 130477 142331 1.55133 1.68948 199900 2.17189 235795 2.55803 277308 3.51788 10 121899 1.28008 1 34392 148024 1.62889 179085 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 1.24337 1.31209 1.38423 1.53945 171034 1.89830 2.33164 258043 2.85312 3.15176 3.47855 4.65239 12 1.26824 1 34480 142570 1.60103 1.79586 201220 2.51817 2.81267 3.13843 3.49845 3.89598 5.35025 13 129361 137851 146853 1.66507 1 88565 2.13293 2.71962 3.06581 3.45227 3.88328 4.36349 6.15279 14 1.31948 1:41297 1.51259 1.73168 1.97993 2.260902.93719 3.34173 3.79750 431044 488711 707571 15 1.34587 1.44830 1.55797 1 80094 2.07893 2.39656 3.17217 3.64248 4.17725 4.78459 5.47357 16 8.13706 137279 148451 1.60471 187298 2.18287 2.54035 3.42594 3.97031 4.50497 5.31089 6.13039 9.35762 17 1.40024 1.52162 1.65285 1.94790 229202 269277 3.70002432763 5.05447 5.89509 6.86604 10.76126 18 1 42825 155968 1.70243 202582 2.40662 285434 3.99602 4.71712 5.55992 6.54355 7 68997 12.37545 19 1.45681 159865 1.75351 210685 252095 3.02560 431570 5.14166 6.11591 726334 8.61276 14 23177 20 1.48595 163862 1.80611 2. 19112 265330 3.20714 4.66096 5.60441 6.727501 ADR21 ORA ARA 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 35 37 38 39 40 1.42825 1,55966 1.70243 2.02582 2.40662 285434 3.99602 4.71712 5.55992 6.54355 7.68997 12 37545 1.45681 1.59865 1.75351 2.10685 2.52695 3.02560 431570 5.14166 6.11591 726334 8.61276 14.23177 1.48595 163862 1.80611 2. 19112 265330 3.20714 4.66096 5.60441 6.72750 8.06231 9.64629 16 36654 1.51567 1.67958 1.86029 227877 278596 3.39956 5,03383 6.10881 7.40025 8.94917 10.80385 18.82152 1.54598 1.72157 191610 2.36992 292526 3.60354 5.43654 6.65860 8.14028 9.93357 12 10031 21.64475 1.57690 1.76461 1.97359 246472 3.07152 3.81975 5.87146 7.25787 8.95430 11.02627 13.55235 24.89146 1.60844 1.80873 2.03279 2.56330 3 22510 4.04893 6.34118 791108 9.84973 12 23916 15.17863 28.62518 1.64061 1.85394 2.09378 266584 3 38635 4.29187 6.84847 8.62308 10.83471 13.58546 17.00006 32.91895 1.67342 1.90029 2.15859 2.77247 3.55567 4.54938 739635 9.39910 11.91818 15.07986 19.04007 37.85680 1.70689 1.94780 222129 2.88337 3.73346 482235 7.98806 10.24508 13.10999 16.73865 21.32488 43.53532 174102 1.99650 2 28793 299870 3.92013 5.11169 8.62711 11.16714 14 42099 18.57990 23.88387 50.06561 1.77584 2.04641 2.35657 3.11865 4.11614 5.41839 9.31727 12.17218 15 86309 20.62369 26.74993 57.57545 1.81136 2.09757 242726 3.24340 432194 5.74349 10.06266 13.26768 1744940 22 89230 29.95992 66 21177 1.84759 215001 250008 3.37313.4.53804 6.08810 10.86767 14.46177 19.19434 25.41045 33.55511 76.14354 1.88454 2.20376 257508 3.50808 4.76494 645339 11.73708 1576333 21.11378 28.20560 3758173 87.56507 1.92223 225885 2 65234 3.64838 5.00319 6.84059 1287605 17 18203 23.22515 31,30821 42.09153 100.69983 1.90068 2 31532 273191 3.79432 5.25335 725103 13.69013 18.72841 2554767 34.75212 47.14252 115.80480 1.99089 237321 2.81386 3.94609 551602 7.68809 14.78534 20.41397 28.10244 38.57485 52.79962 133 17552 2.03980 2.43254 2.89828 4.10393 570182 8.14725 15 96817 2225123 30.91268 42 81808 59,13557 153.15185 208069 249335 2.98523 4.26809 6.08141 8.63609 17 24563 24.25384 34.00395 47.52807 66.23184 176.12463 2.12230 255568 3.07478 443881 638548 9.15425 18.62528 28.43660 37.40434 52 75616 74.17966 202 54332 2.16474 2.61967 3.16703 461637 6.70475 9.70351 20.11530 28 81598 41.14479 58 55934 83.08122 232.92482 220804 268508 3 26204 4.80102 703990 10 28572 2172452 3140912 4525926 65.00087 93.05097 207 86355