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
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