Question: The following estimated data has been determined by management: Machine 1 Machine 2 Initial cost $40,800 $50,250 Estimated life 6 years 6 years Salvage value

 The following estimated data has been determined by management: Machine 1

The following estimated data has been determined by management: Machine 1 Machine 2 Initial cost $40,800 $50,250 Estimated life 6 years 6 years Salvage value $1,130 $1,450 Estimated annual cash inflows $15,100 $19,850 Estimated annual cash outflows $4,100 $6,950 Click here to view the factor table. Calculate the profitability index assuming an 10% discount rate. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to 3 decimal places, e.g. 1.251.) Profitability Index Machine 1 Machine 2

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