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A company buys a color printer that will cost $17,000 to buy, and last 5 years. It is assumed that it will require servicing costing
A company buys a color printer that will cost $17,000 to buy, and last 5 years. It is assumed that it will require servicing costing $800 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 8%? A. - $3,540 B. - $4,046 C. - $5,058 D. - $4,552 The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $410,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 $200,000 Year 2 $225,000 Year 3 $275,000 Year 4 $200,000 The appropriate discount rate for this project is 18%. The net present value (NPV) for this project is closest to: O A. $134,130 B. $201,195 C. $479,036 D. $191,614
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