see attachment for the assignment.

see attachment for the assignment.


Instructions 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 $75,500 $180,000 Estimated life in years 8 8 Salvage value 0 0 Estimated annual cash inflows $20,000 $40,000 Estimated annual cash outflows $5,000 $10,000 Tasks: Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Which machine should be purchased? Machine A Cash Flows × 9% Discount Factor = Present Value Title Amount × Formula = Formula Title Amount × Formula = Formula Formula Title Formula Title Formula Formula Machine B Cash Flows × 9% Discount Factor = Present Value Title Amount × Formula = Formula Title Amount × Formula = Formula Formula Title Formula Title Formula Formula Submission Guidelines: Your worksheet should be in Microsoft Excel format. Grading Criteria Maximum Points Calculated the net present value of machine A. 10 Calculated the profitability index of machine A. 10 Calculated the net present value of machine B. 10 Calculated the profitability index of machine B. 10 Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources (i.e., APA); and displayed accurate spelling, grammar, and punctuation.. 10 Total: 50