Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marinis Corporation is considering buying a brand new machine and has gathered the following data: Investment Estimated life $104,800 5 years $29,900 Estimated annual
Marinis Corporation is considering buying a brand new machine and has gathered the following data: Investment Estimated life $104,800 5 years $29,900 Estimated annual cash outflows $10,000 Estimated annual cash inflows Salvage value for the machine is estimated to be zero. Click here to view PV table. Calculate the net present value of the machine assuming a 8% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) $ Net Present Value 6967.952
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started