Help Save& Exit Submit The following present value factors are provided for use
ID: 2591897 • Letter: H
Question
Help Save& Exit Submit The following present value factors are provided for use in this problem. Present Value of $1 at 9% 0.9174 0.8417 0.7722 0.7084 Present Value of an Periods Ann nuity of $1 at 9% 0.9174 1.7591 2.5313 3.2397 4 pected year-end net cash flows are S26000 n Co. wants to purchase a machine for $66,000, but needs to earn an 996 return. The ex each of the first three years, and $30,000 in the fourth year. What is the machine's net present value? Cliff Multiple Choice $(186). $21066 Next>Explanation / Answer
Answer:- Machine’s net present value = Present value of cash inflows – Total outflows
={($26000*2.5313)+($30000*.7084) - $66000}
=($65814+$21252) - $66000
= $87066-$66000
= $21066
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