Current Attempt in Progress

Sarasota Company is considering purchasing one of two new machines. The following estimates are available for each machine:

The company's minimum required rate of return is $\backslash (9\backslash \%\backslash ).$

Click here to view PV tables. Compute the net present value. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round intermediate calculations and final answers to $0$ decimal places, e$.$g$.5,275.)$

Machine $1$

Net present value

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Machine $2$

$\backslash$$

$12,081$

$($a$2)$

V Your answer is correct.

Compute the profitability index. $($Round answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Machine $1$

Machine $2$

Profitability index

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Attempts: $1$ of $3$ used

Your answer is incorrect.

Compute the internal rate of return for each machine. $($Round answer to $0$ decimal places, e$.$g$.5,275.)$

Attempts: $1$ of $3$ used

$($b$)$

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