Question #18 starts at the bottom of the first page and continues onto the top part of the second page.

3.0373 What is the net present value of the machine? O $24.018. O $(3.100), O $30,000 O $26.900 $(29,520. References Learning Objective: 24-P3 Compute net present value and describe its use. Multiple Choice Difficulty: 3 Hard 18. Award: 10.00 points for the first two years and $30,000 for years three and four. The revenue is to be received at the end of each machine has a useful life of 4 years and no salvage value. Poe requ e purchase of new equipment costing $80.000. The projected net cash flows are $35.000 res a 10% return on its investments. The present value of an annulty of $1 for different periods is presented below. Compute the net present value of the machine. Present Value or $1 at 10% 0.9091 0.8264 0.7514 06830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 3.1699 Perods O $15.73) O $4.896 O $15.731 O $4,896. $23,775 References Multiple Choice Difficulty: 3 Hard Learning Objective: 24-P3 Compute net present value and describe its use. 9. Award: 10.00 polnts A company buys a machine for $60,000 that has an expected life of 9 years and no salvage value. The company anticipates a yearly net income of $2.850 after taxes of 30%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return? 2.85%. 4.75% 6.65% 9.50% 42.75% References Learning Objective: 24-P2 Compute accounting rate of return and explain its use Multiple Choice Difficulty: 3 Hard 20. Award: 10.00 points