PRINTER VISION BACK NEXT TLC Corp. is considering purchasing one of two new diagnostic machines....

90.2K

Verified Solution

Question

Accounting

image
PRINTER VISION BACK NEXT TLC Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on job that it currently is not equipped to do. Estimates for each machine are as follows: Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Machine A $78,200 8 years 0 $22,000 $5,150 Machines $189,600 8 years 0 $40,200 $0,850 Click here to view Py_table. Calculate the net present value and profitability index of each machine. Assume a 10% discount rate. (If the net present who is negative either a detive preceding the number 0.5 or parentheses (45), For calculation purposes, se decimal places as displayed in the factor tane provided : 254 and final answers to o decimal places 5,275. Round profitability Index answers to decimal aces, .0. 12.527 Machine A Machine Net present value Profitability Index Which machine should be purchased? LINK TO TEXT LINE TO TEXT

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