MVP Sports Equipment Company is considering an investment in one of two machin

MVP Sports Equipment Company is considering an investment in one of two machines. The sewing machine will increase productivity from sewing 120 baseballs
per hour to sewing 220 per hour. The contribution margin is $0.36 per baseball. Assume that any increased production of baseballs can be sold. The second
machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to
$24 per hour. The sewing machine will cost $256300 have a 10-year life and will operate for 1400 hours per year. The packing machine will cost
$141600 have a 10-year life and will operate for 1200 hours per year. MVP seeks a minimum rate of return of 12% on its investments.

a. Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above. Round to the nearest
dollar.

b. Determine the present value index for the two machines. If required round your answers to two decimal places.

c. If MVP has sufficient funds for only one of the machines and qualitative factors are equal between the two machines in which machine
should it invest? (If both present value indexes are the same either machine will grade as correct.)
SelectPacking MachineSewing MachineItem 9
Can you please show your work so I can get a good understanding of how you got to your answers?