2) The Dress Company wants to purchase a new cutting machine. The investment is expected to generate annual cash flows o
Posted: Sun Apr 17, 2022 6:58 pm
2) The Dress Company wants to purchase a new cutting machine.
The investment is expected to generate annual cash flows of
$250,000. The required rate of return is 10%. The machine is
expected to have a useful life of four years. What is the maximum
amount the company should pay for the machine?
a)$170,750
b)$546,400
c)$759,000
d)$792,475
The investment is expected to generate annual cash flows of
$250,000. The required rate of return is 10%. The machine is
expected to have a useful life of four years. What is the maximum
amount the company should pay for the machine?
a)$170,750
b)$546,400
c)$759,000
d)$792,475