Sturn Corporation purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $9,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, if Stutz's discount rate is 10%, and if the net present value of this investment is $17,000 then the purchase price of the machine was closest to:
A)$43,812
B)$26,812
C)$17,000
D)$22,195

Question

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The Answer of Sturn Corporation purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $9,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, if Stutz's discount rate is 10%, and if the net present value of this investment is $17,000 then the purchase price of the machine was closest to:
A)$43,812
B)$26,812
C)$17,000
D)$22,195

Sturn Corporation Purchased a Machine with an Estimated Useful Life