A firm anticipates that if it spends $16,000 on a machine today its profit will increase by $6,000 for each of the next four years.
A firm anticipates that if it spends $16,000 on a machine today its profit will increase by $6,000 for each of the next four years. Assuming the interest rate is 5%, what is the net present value if it makes this purchase? Round your final answer to the nearest dollar.
Group of answer choices
$6,891
$5,276
None of the answers listed is correct.
$4,859
$7,249
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Authors: Vickie L Bajtelsmit
2nd Edition
111959247X, 9781119592471
