The management of Dakota Corporation is considering the purchase of a new machine costing $420,000. The company's desire

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The Management Of Dakota Corporation Is Considering The Purchase Of A New Machine Costing 420 000 The Company S Desire 1 (15.39 KiB) Viewed 11 times

The management of Dakota Corporation is considering the purchase of a new machine costing $420,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0,909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year 1 2 3 4 Income from Operations $100,000 40,000 20,000 10,000 10,000 Net Cash Flow $180,000 120,000 100,000 90,000 90,000 The present value index for this investment is Oa. 145 Ob. 1.08 Oc., 0.70 Od. 1.14