Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bak corp. is considering purchasing one of two new

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make...

90.2K

Verified Solution

Question

Accounting

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 isnt equipped to do. Estimates regarding each machine are provided below.

Machine A Machine B
Original cost $76,600 $179,000
Estimated life 8 years 8 years
Salvage value 0 0
Estimated annual cash inflows $19,900 $40,400
Estimated annual cash outflows $4,890 $9,940

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, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Machine A Machine B
Net present value enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places
Profitability index enter the Profitability index rounded to 2 decimal places enter the Profitability index rounded to 2 decimal places

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

#2 I post this twice, please don't duplicate answer I need two different views. Thanks Discussion: Inner Neandertal What...

Medical Sciences
1.2K views

1) Detail the complete reflex pathway involving parasympathetic signalling to the heart. Begin this at the...

General Management
1.2K views

The Intention to Create Legal Relations will determine whether an agreement can either be legally binding...

Physics
1.2K views

A massless spool of inner radius r outer radius R is placed against a vertical...

Physics
1.2K views

4 Any value Two identical bar magnets each of same length and magnetic moment one...

Basic Math
1.2K views

Given that the polynomial f(x) has 8 turning points, which of the following most accurately...

Basic Math
1.2K views

Consider these functions f x 3x3 2 g x Which statements if any are true...

Statistics
1.2K views

Regression line equation y 801 Correct Answer Regression line equation y 9 6733 0 5744x...

Calculus
1.2K views

Find the flux of outward across the curve 9x 4y 36 in the xy plane...

Calculus
1.2K views

scuba diver 60 ft below the ocean surface inhales 90 0 mL of ompressed air...

Accounting
1.2K views

In its first month of operations. Coronado Company made three purchases of merchandise in the...

Finance
1.2K views

One year ago, your company purchased a machine used in manufacturing for $90,000. You have...