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I'm stuck on these. Can I get help please? Butler Corporatlon ls conslderlng the purchase of new equlpment costlng $81,000. The projected annual after-tax net
I'm stuck on these. Can I get help please?
Butler Corporatlon ls conslderlng the purchase of new equlpment costlng $81,000. The projected annual after-tax net Income from the equlpment ls $2,900, after deductlng $27000 for depreclatlon. The revenue ls to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 10% return on its Investments. The present value of an annuity of 1 for different perlods follows: Periods 10 Percent 1 0.9091 2 1.7355 3 2.4869 4 31699 What Is the net present value of the machine? O $67146. O $74,358. O $(6,642) O $81000. 2-3Step by Step Solution
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