Question
A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year by selling the products manufactured by using this
A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year by selling the products manufactured by using this machine.
If the discount rate is 12% and the machine lasts for 7 years, what is its equivalent annual annuity? Hint: you first need to find the NPV of the project.
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
