Blossom Corp. is considering purchasing one of two new diagnostic machines. Either machine would make...
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Blossom 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 here. Machine A $75,500 Machine B $190,000 8 years 8 years 0 0 Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows $19.600 $40,000 $4.990 $9.970 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 eg - 45 or parentheses es (45). Round answer for present value to 0 decimal places, 6.3. 125 and profitability Index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal places os displayed in the factor table provided.) Machine A Machine B Net present value Profitability index
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