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13 Aug 2018
The following present valuefactors are provided for use in this problem.
Periods Presentvalue
of 1 at 8% Present valueof an annuity of 1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121
Cliff Co. wants to purchase a machine for $48,000, but needs toearn an 8% return. The expected year-end net cash flows are $17,000in each of the first three years, and $21,000 in the fourth year.What is the machine's net present value (round to the nearest wholedollar)?
The following present valuefactors are provided for use in this problem. |
Periods | Presentvalue of 1 at 8% | Present valueof an annuity of 1 at 8% |
1 | 0.9259 | 0.9259 |
2 | 0.8573 | 1.7833 |
3 | 0.7938 | 2.5771 |
4 | 0.7350 | 3.3121 |
Cliff Co. wants to purchase a machine for $48,000, but needs toearn an 8% return. The expected year-end net cash flows are $17,000in each of the first three years, and $21,000 in the fourth year.What is the machine's net present value (round to the nearest wholedollar)? |
Irving HeathcoteLv2
15 Aug 2018