Question
Consider the following two machines a company can purchase. The following table provides the costs of the machines and the annual cash flows obtained from
Consider the following two machines a company can purchase. The following table provides the costs of the machines and the annual cash flows obtained from the machines over their lifetimes.
| Initial Cost | Cash Inflows per year | Years of Service | |
| Machine A | $17,000 | $14,000 | 7 |
| Machine B | $9,000 | $15,000 | 4 |
The discount rate is 1%.
What is the net present value for each machine?
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Castles And Moats Insurance Investment And Life Planning Simply Explained
Authors: Brian Carden
1st Edition
,1637630468
