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28 Sep 2019
The following present value factors are provided for use in thisproblem.
Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121
Xavier Co. wants to purchase a machine for $36,000 with a fouryear life and a $1,200 salvage value. Xavier requires an 8% returnon investment. The expected year-end net cash flows are $11,000 ineach of the four years. What is the machine's net present value(round to the nearest whole dollar)?
$1,315.
$433.
$37,315.
$(1,315).
$(433
The following present value factors are provided for use in thisproblem.
| Periods | Present Value of $1 at 8% | Present Value of an Annuity of $1 at8% |
| 1 | 0.9259 | 0.9259 |
| 2 | 0.8573 | 1.7833 |
| 3 | 0.7938 | 2.5771 |
| 4 | 0.7350 | 3.3121 |
Xavier Co. wants to purchase a machine for $36,000 with a fouryear life and a $1,200 salvage value. Xavier requires an 8% returnon investment. The expected year-end net cash flows are $11,000 ineach of the four years. What is the machine's net present value(round to the nearest whole dollar)? |
$1,315.
$433.
$37,315.
$(1,315).
$(433
Elin HesselLv2
28 Sep 2019
