Business, 05.08.2019 20:30 monaldossari

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 machine b
original cost $76,700 $183,000
estimated life 8 years 8 years
salvage value 0 0
estimated annual cash inflows $20,200 $40,500
estimated annual cash outflows $5,040 $9,870
a. calculate the net present value and the profitability index of each machine. assume a 9% discount rate. (round net present value to 0 decimal places )
b. which machine should be purchased?

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Bak corp. is considering purchasing one of two new diagnostic machines. either machine would make it...

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