Question: Bailey Corporation is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more

Bailey Corporation is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more efficiently than it is currently equipped to do. Estimates regarding each machine are provided below:

	Machine A	Machine B
Initial Investment	$113.250	$270,000
Estimated Life	10 years	10 years
Salvage Value	-0-	-0-
Estimated Annual Cash Inflows	$30.000	$60,000
Estimated Annual Cash Outflows	$7500	$15,000

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