Question
BIK corp is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt
BIK corp is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do. Estimates regarding the machine are provided below.
| Machine Estimates | |
| Original Cost | $188,000 |
| Estimated Life | 8 years |
| Salvage Value | $0 |
| Estimated Annual Cash Inflows | $40,200 |
| Estimated Annual Cash Outflows | $9,860 |
Calculate the net present value of the machine investment. Assume a 9% discount rate.
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Comparative International Accounting Subsequent Edition
Authors: Christopher Nobes, R. H. Parker
5th Edition
0137364636, 9780137364633
