A Company Is Considering The Purchase Of New Equipment For 63 000 The Projected Annual Net Cash Flows Are 25 600 The 1 (17.05 KiB) Viewed 9 times
A Company Is Considering The Purchase Of New Equipment For 63 000 The Projected Annual Net Cash Flows Are 25 600 The 2 (9.65 KiB) Viewed 9 times
A company is considering the purchase of new equipment for $63,000. The projected annual net cash flows are $25,600. The machine has a useful fe of 3 years and no salvage value. Management of the company requires a 10% return on investment. The present value of an annuity of $1 for various periods follows: Period 1 Present value of an annuity of $1 at 10% 0.9091 1.7355 2.4869 What is the net present value of this machine assuming all cash flows occur at year-end? Multiple Choice $21,000 $3,600 $665
O $21000 $3,600 $665 $24,600 $61,178
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!