Question: - / 1 III View Policies Current Attempt in Progress BAK Corp, is considering purchasing one of two new diagnostic machines. Either machine would make
- / 1 III View Policies Current Attempt in Progress BAK 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 cach machine are provided below. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated mulcash outflows Machine A $74,000 8 years 0 $19.500 $4,800 Machine B $179.000 Byears 0 $39,500 $9.800 Click here to PV tables 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 of 45 or parenthesesex (45). Round answer for present value to decimal places 28. 125 and profitability index to 2 decimal places, es, 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 purchased? should be purchased e Textbook and Media
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