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Stratford Company purchased a machine with n estimated useful life of seven years. The machine will generate cash inflows of $90,000 each year over the
Stratford Company purchased a machine with n estimated useful life of seven years. The machine will generate cash inflows of $90,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is $170,000?
A. $221,950
B. $170,00
C. $268,120
D. $438,120
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