SOURCES 26 HW Question 1 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$40,000 $5,000$10,000 by Study calculate the net present value and prontability index of each machine. Assume a 9% discount rate. (If the net present eg (45). Round ans eg -45 or value is negative, use either a negative sign preceding the number for present value to O decimal places, e.g. 125 and profitability index to 2 decimal calculation purposes, use 5 decimal places as displayed in the factor table provided) Machine A Machine B Net present value Profitability index Which machine should be purchased? should be purchased SAVE FOR LATER Question Attempts: O of 10 used