Use the following to answer questions
Forecaster Industries is considering the purchase of a new machine that will cost the company $65,750. The machine is estimated to have a 5 year life and no salvage value. The machine is expected to generate $23,000 of cash inflows each year over the life of the asset. Forecaster's cost of capital is 12%.
-Ignoring income taxes,the maximum price Forecaster should pay for this machine is:

Question

Use the following to answer questions 
Forecaster Industries is considering the purchase of a new machine that will cost the company $65,750. The machine is estimated to have a 5 year life and no salvage value. The machine is expected to generate $23,000 of cash inflows each year over the life of the asset. Forecaster's cost of capital is 12%.
-Ignoring income taxes,the maximum price Forecaster should pay for this machine is:

Quizplus · Accepted Answer

The Answer of Use the following to answer questions 
Forecaster Industries is considering the purchase of a new machine that will cost the company $65,750. The machine is estimated to have a 5 year life and no salvage value. The machine is expected to generate $23,000 of cash inflows each year over the life of the asset. Forecaster's cost of capital is 12%.
-Ignoring income taxes,the maximum price Forecaster should pay for this machine is:

Use the Following to Answer Questions