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In 6 years, Hopkins Company plans to receive $ 1 2 , 6 0 0 cash from the sale of a machine that has a

In 6 years, Hopkins Company plans to receive $12,600 cash from the sale of a machine that has a $5,800 book value.
Year FV of $1 at 7% FV of an ordinary annuity at 7% PV of $1 at 7% PV of an ordinary annuity at 7%
11.0701.0000.9350.935
21.1452.0700.8731.808
31.2253.2150.8162.624
41.3114.4400.7633.387
51.4035.7510.7134.100
61.5017.1530.6664.767
If the firm is subject to a 30% income tax rate and has a(n)7% after-tax hurdle rate, the correct discounted net cash flow would be:
Multiple Choice
None of the other answers is correct.
$14,640.
$10,560.
$7,033.
$9,185.

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