(Ignore income taxes in this problem.) The Becker Company is interested in buying a piece of equipment that it needs. The following data have been assembled concerning this equipment: This equipment is expected to have a useful life of 6 years. At the end of the sixth year the working capital would be released for use elsewhere. The company's discount rate is 10%.
-The present value of the net cash flows (all cash inflows less all cash outflows) occurring during year 6 is closest to:

Question

(Ignore income taxes in this problem.) The Becker Company is interested in buying a piece of equipment that it needs. The following data have been assembled concerning this equipment:  This equipment is expected to have a useful life of 6 years. At the end of the sixth year the working capital would be released for use elsewhere. The company's discount rate is 10%.
-The present value of the net cash flows (all cash inflows less all cash outflows) occurring during year 6 is closest to:

Quizplus · Accepted Answer

The Answer of (Ignore income taxes in this problem.) The Becker Company is interested in buying a piece of equipment that it needs. The following data have been assembled concerning this equipment:  This equipment is expected to have a useful life of 6 years. At the end of the sixth year the working capital would be released for use elsewhere. The company's discount rate is 10%.
-The present value of the net cash flows (all cash inflows less all cash outflows) occurring during year 6 is closest to:

(Ignore Income Taxes in This Problem