Question: Marigold Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more
Marigold Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company to produce its products more efficiently than it is currently equipped to do. Estimates regarding each machine are provided below: Machine A Machine B Original cost $113,800 $267,500 Estimated life 10 years 10 years Salvage value -0- Estimated annual cash inflows $30,100 $60,000 Estimated annual cash outflows $7,400 $15,200 dy Calculate the net present value and profitability index of each machine. Assume an 8% discount rate (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places eg. 589.71. Enter negative amounts using either a negative sin preceding the number eg.-15.35 or parentheses ng (45.357.) Machine A Machine Net present value Profitability Index Which machine should be purchased Marigold Corp. should purchase Click If you would like to show Work for this questioni Oon Show. Work
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