KSU 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.
Instructions
Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Which machine should be purchased?

Question

KSU 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.  
Instructions
Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Which machine should be purchased?

Quizplus · Accepted Answer

The Answer of KSU 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.  
Instructions
Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. Which machine should be purchased?

KSU Corp Is Considering Purchasing One of Two New Diagnostic Machines