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Current Ampprogress -/1 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. Machine A $74,600 Machine B $182,000 8 years 8 years Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows 0 0 $20,000 540.200 $5.170 $10.190 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 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 Profitability index Which machine should be purchased? should be purchased Oriole Inc. manufactures snowsuits. Oriole is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased 5 years ago at a price of $1.8 million; 6 months ago, Oriole spent $55.000 to keep it operational. The existing sewing machine can be sold today for $241,846. The new sewing machine would require a one-time. $85.000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $390,600 N 399.400 3 411,000 425.900 5 432.000 6 434.600 7 436,400 The new sewing machine would be depreciated according to the declining balance method at a rate of 20%. The salvage value is expected to be $379,400. This new equipment would require maintenance costs of $94,200 at the end of the fifth year. The cost of capital is 9% Click here to view PV table Calculate the net present value. (If net present value is negative then enter with negative in preceding the number eg. -45 or parentheses eg.(45). Round present value answer to decimal places, es. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) $ Net present value Based on the net present value should Oriole purchase the new machine to replace the existing machine