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

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Accounting

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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 $74.000 Machine B $179,000 Original cost 8 years 8 years Estimated life Salvage value 0 0 $19,500 $39,500 Estimated annual cash inflows Estimated annual cash outflows $4,800 $9,800 Click here to view the factor 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 sin preceding the number es -45 or parentheses es (45). Round answer for present value to O 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

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