G H E12-4 Compute net present value and profitability index 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 $75,500 8 years Machine B $180,000 8 years Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows $20,000 $5,000 $40,000 $10,000 Instructions calculate the net present value and profitability index of each machine. Assume a 9% discount rate. NOTE: Enter a number in celis requesting a value; onter either a number or a formula in cells with a" 9% Discount Present Factor Value Machine A Cash Flows X Present value of net annual cash flows Present value of salvage value Value X5.53482 Value X0.50187 ? Value Less: Capital investment Net present value Profitability Index Value Value 30 9% Discount Present Factor Value Machine B Cash Flows X Value Present value of net annual cash flows Present value of salvage value X5.53482 ValueX0.50187 34 25 26 37 38 20 Value Capital investment Net present value Value Value Profitability Index 40 Response 45