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?

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy. year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.