A company is considering the purchase of new equipment costing $91,000. The machine has a useful life of 4 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:
Verified
Q92: What is discounting?
Q95: Which of the following cash flows is
Q96: Peng Corporation is considering the purchase
Q97: The rate that yields a net present
Q98: Daniels Corporation is considering the purchase
Q104: Bower Co. is reviewing a capital
Q105: A company is evaluating the purchase of
Q107: You have evaluated three projects using the
Q112: A company purchases a machine for $84,000.The
Q127: What is capital budgeting? Why are capital
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