Question
JT Engineering wants to buy a machine that costs $312,000, has a 15 year-life, and has a $9,000 salvage value. Annual inflows are $112,000 and
JT Engineering wants to buy a machine that costs $312,000, has a 15 year-life, and has a $9,000 salvage value. Annual inflows are $112,000 and annual outflows are $79,000. JT requires a 10% return, which has an annuity present value factor of 7.6061 and a single future amount present value factor of 0.2394. What is the NPV of this purchase to the nearest dollar?
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
