Question

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 $77,500 $186,000 estimated life 8 years 8 years salvage value 0 0 estimated annual cash inflows $19,500 $39,600 estimated annual cash outflows $5,040 $9,800

Answer 1

Check the attached file for the solution to this problem.