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Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the

Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the next 5 years. The machine has a salvage value of $8,000 at the end of its 5 year useful life. Altman's cost of capital and discount rate is 9%. Which of the following tables and criteria should we use to discount the salvage value of the equipment?

a

PV of a single sum table, n=5, i=9%

b

PV of annuity table, n=5, i=9%

c

PV of a single sum table, n=1, i=9%

d

PV of annuity table, n=1, i=9%

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