Poe Company is considering the purchase of new equipment costing $80,000.The projected annual cash inflows are $30,200,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Poe requires a 10% return on its investments.The present value of $1 and present value of an annuity of $1 for different periods is presented below.

-Compute the net present value of the machine.

Question

Poe Company is considering the purchase of new equipment costing $80,000.The projected annual cash inflows are $30,200,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Poe requires a 10% return on its investments.The present value of $1 and present value of an annuity of $1 for different periods is presented below.

-Compute the net present value of the machine.

Quizplus · Accepted Answer

The Answer of Poe Company is considering the purchase of new equipment costing $80,000.The projected annual cash inflows are $30,200,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Poe requires a 10% return on its investments.The present value of $1 and present value of an annuity of $1 for different periods is presented below.

-Compute the net present value of the machine.

Poe Company Is Considering the Purchase of New Equipment Costing