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D) $163,005; no res desires to buy a new crane and accessories to help move and install moe buildings. The machine sells for $75,000 and
D) $163,005; no res desires to buy a new crane and accessories to help move and install moe buildings. The machine sells for $75,000 and requires working capital of $10,000. Its estim useful life is six years and it will have a salvage value of $17,560. Recovery of working cap will be $10,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $20,000. Required ute the net present value at a 12% required rate of return 8) Determine the payback period of the investment
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