CALCULATOR PRINTER VERSION BACK NEXT Exercise 12-4 (Video) Your answer is partially correct. Try again. 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 each machine are provided below. Machine A Original cost $76,700 Estimated life 8 years Salvage value 0 Estimated annual cash inflows $20,100 Estimated annual cash outflows $4,910 Machine B $188,000 8 years 0 $40,200 $10,130 Click here to view ptable. 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 eg-45 or parentheses eg (45). Round answer for present value to 0 decimal places, eg. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, uses decimal places as displayed in the factor table provided.) Machine A Machine B Net present value 5,594 19,461.03 Profitability Index 1.10 .90 Which machine should be purchased? Policx 2000-2020 W. Sons Inc. All Rights Reserved. A Division of John W. Sons, Inc Version 4.24,20.1 19 A G Search or type URL A % 5 3 4 6 7 8 9 0