A corporation is considering purchasing a machine that costs $100,000 and has a $20,000 salvage value .

Question:

A is considering purchasing a machine that costs $100,000 and has a $20,000 . The machine will provide net annual cash inflows of $25,000 per year and has a six year life. The uses a of 10%. The discount factor for the present value of a single sum six years in the future is 0.564. The discount factor for the present value of an for six years is 4.355. What is the of the machine?
a. ($2,405)
b. $8,875
c. $20,155
d. $28,875
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