Flak Company purchased a machine and assigned it a life

of nine years with no salvage value. The machine is

expected to generate net cash inflows of $$22,000$ per

year over its useful life. Flak Company uses a $10\%$ cost

of capital in evaluating its capital investment projects.

The internal rate of return on the machine was calculated

to be $14\%.$

Calculate the purchase price of the machine.Present Value of a Lump$-$Sum

Present Value of an Annuity