Figure 14-11.
Present value of an Annuity of $1 in Arrears
Refer to Figure 14-11.Lyster Company wants to buy a new machine that will be able to perform many of the steps in the manufacturing process that they currently have to do manually.The hope is that it will reduce the amount of time it takes to create one unit and reduce the number of defective units.The machine requires an investment of $750,000.The machine will last six years with no expected salvage value.The expected after-tax cash flows associated with the project are as follows:

Question

Figure 14-11.
Present value of an Annuity of $1 in Arrears
  Refer to Figure 14-11.Lyster Company wants to buy a new machine that will be able to perform many of the steps in the manufacturing process that they currently have to do manually.The hope is that it will reduce the amount of time it takes to create one unit and reduce the number of defective units.The machine requires an investment of $750,000.The machine will last six years with no expected salvage value.The expected after-tax cash flows associated with the project are as follows:

Quizplus · Accepted Answer

The Answer of Figure 14-11.
Present value of an Annuity of $1 in Arrears
  Refer to Figure 14-11.Lyster Company wants to buy a new machine that will be able to perform many of the steps in the manufacturing process that they currently have to do manually.The hope is that it will reduce the amount of time it takes to create one unit and reduce the number of defective units.The machine requires an investment of $750,000.The machine will last six years with no expected salvage value.The expected after-tax cash flows associated with the project are as follows:

Figure 14-11. Present Value of an Annuity of $1 in Arrears