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33. 2.94 points Poe Company is considering the purchase of new equipment costing $83,000. The projected net cash flows are $38,000 for the first two
33. 2.94 points Poe Company is considering the purchase of new equipment costing $83,000. The projected net cash flows are $38,000 for the first two years and $33,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for periods is presented below. Compute the net present value of the machine. Present Value of Present Value of an Periods 1 at 10% Annuity of 1 at 10% 0.9091 0.9091 0.8264 17355 07513 2.4869 06830 31699 O $(22.24 O suo 329. O $22241. O $10,329. O $30,284
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