A company is considering the purchase of new equipment costing $91,000.The machine has a useful life of four years and no salvage value.The company requires a 12% return on its investments.The factors for the present value of an annuity of 1 for different periods follow: Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790) ?
A) $78,210
B) $10,920
C) $25,750
D) $237,547
E) $33,513
Correct Answer:
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