An agricultural accounting firm is considering purchasing several new copy machines.A $20,000 down payment would be required.Amortized
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An agricultural accounting firm is considering purchasing several new copy machines.A $20,000 down payment would be required.Amortized loan payments of $12,000 would then be made at the end of years 1-5.The copiers would have a salvage value of $4,000 at the end of five years.Annual operating expenses would be $3,000 each year.$18,000 in cash inflows each year would be attributed to the copiers.Given a cost of capital of 5%, what is the approximate net present value of this investment?
a.$3,877
b.Cannot be determined
c.-$3,877
d.$4,329
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