Question
A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues: Year 1: $50,000 Year 2: $30,000
A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues:
Year 1: $50,000
Year 2: $30,000
Year 3: $20,000
Year 4: $10,000
The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%.
What is the net present value(NPV)?
Answer:
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College Accounting Chapters 1-24
Authors: Tracie L Nobles, Cathy Scott
11th Edition
1111528306, 978-1111528300
