ercise Bailey Corporation is considering purchasing one of two new processing machines machine would make...
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ercise Bailey Corporation is considering purchasing one of two new processing machines machine would make it possible for the company to produce its products more eff it is currently equipped to do. Estimates regarding each machine are provided belo Machine A $113,250 10 years Machine B $270,000 10 years Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows 0- $30,000 7,500 $60,000 $15,000 Instructions . Calculate the net present value and profitability index of each machine. Assume an 8% discount rate. Which machine should be purchased? Bailey Corporation did some further research and found one other possible machine that woulo produce the same type of production efficiencies. The information regarding Machine Cis below: Machine c $250,000 Original cost
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