Question: 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

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 isnt equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $76,600 $190,000 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $20,000 $40,500 Estimated annual cash outflows $5,140 $10,100

Net Present Value; Machine A and Machine B

Profitability Index: Machine A and Machine B

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