



Reids Company,which uses net present value to analyze investments,requires a 10% minimum rate of return.A staff assistant recently calculated a $500,000 machine's net present value to be $86,400,excluding the impact of straight-line depreciation.If Reids ignores income taxes and the machine is expected to have a five-year service life,the correct net present value of the machine would be:
A) $(13,600) .
B) $86,400.
C) $186,400.
D) $292,700.
E) $465,500.
Correct Answer:
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