Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: What is the net present value of the machine?
A) $(33,410) .
B) $(3,100) .
C) $35,000.
D) $3,410.
E) $(1,590) .
Correct Answer:
Verified
Q68: The hurdle rate is often set at:
A)
Q70: Which one of the following methods considers
Q84: A company can buy a machine that
Q99: Which of the following cash flows is
Q104: A new manufacturing machine is expected to
Q107: A machine costs $180,000 and will have
Q109: Tressor Company is considering a 5-year
Q110: Turk Manufacturing is considering purchasing two
Q113: Alfarsi Industries uses the net present
Q117: Nestor Company is considering the purchase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents