Q3/12

Current Attempt in Progress Pharoah 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 here. Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses eg (45). Round answer for present value to 0 decimal places, eg. 125 and profitability index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine A Machine B Net present value Question 3 of 12 12 Clickhere to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses eg (45). Round answer for present value to 0 decimal places, es, 125 and profitability index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal ploces as displayed in the factor table provided.) Machine A Net present value Machine B Machine B Profitability index Which machine should be purchased? should be purchased. eTextbook and Media Attempts: 0 of 6 used