Question: Current Attempt in Progress .ccounting Updates Swifty Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the

Current Attempt in Progress .ccounting Updates Swifty 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. ions ences Machine A Machine B orations Original cost $76,600 $187,000 LUS Support Estimated life 8 years 8 years Salvage value Estimated annual cash inflows $40,400 $20,400 $5,190 Estimated annual cash outflows $10,130 Click here to view PV table. Calculate the net present value and profitability Index of each machine. Assume a 9% discount rate of the net present value is negative use either a negative sin preceding the numbers-45 or parentheses es (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 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 Save for Later
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
