Question: Question 1 of 1 - /10 E View Policies Current Attempt in Progress Bramble Corp. is considering purchasing one of two new processing machines. Either

 Question 1 of 1 - /10 E View Policies Current Attempt
in Progress Bramble Corp. is considering purchasing one of two new processing

Question 1 of 1 - /10 E View Policies Current Attempt in Progress Bramble 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 $113,900 $270,900 Original cost Estimated life 10 years 10 years Salvage value -0 -0- Estimated annual cash inflows $30,300 $59.400 Estimated annual cash outflows $7,500 $14.900 (a) 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, eg, 1.25124 and the final answer to 2 decimal places 58971. Enter negative amounts using either a negative sign preceding the number 23. -45.35 or parentheseses. 145.351) Machine A Machine B 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, s. 1.25124 and the final answer to 2 decimal places 48. 589.7. Enter negative amounts usingelther a negative sign preceding the number eg. 45.35 or parentheseses (45.350 Machine A Machine B $ 25,669.66 $ 27.698.56 Net present value Profitability Index Which machine should be purchased! Bramble Corp, should purchase e Textbook and Media Attempts: 0 of 2 used Submit Answer Save for Later Last saved 8 minutes ago Saved work will be auto-submitted on the due date. Autor submission can take up to 10 minutes

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