Question: 70.5 View Policies Current Attempt in Progress Oriole Corp. is considering purchasing one of two new diagnostic machines Either machine would make it possible for
70.5 View Policies Current Attempt in Progress Oriole 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 here Machine A Machine B Original cost $ 76,600 $ 179,000 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $ 19.900 $ 40,400 Estimated annual cash outflows $4,890 $9.940 Click here to view the factor table Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Of the net present value is negative, useether a negative sin preceding the number 45 or parentheses (45). Round answer for present value to decimal places, es 125 and profitability index to 2 decimal places, s. 10.50. For calculation purposes, use 5decimal 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 Textbook and Media Sanelor Later Attempts of used
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