Question
TB MC Qu. 24-105 Vextra Corporation is considering the purchase... Vextra Corporation is considering the purchase of new equipment costing $42,500. The projected annual cash
TB MC Qu. 24-105 Vextra Corporation is considering the purchase... Vextra Corporation is considering the purchase of new equipment costing $42,500. The projected annual cash inflow is $12,500, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 12% 1 0.8929 2 1.6901 3 2.4018 4 3.0373 What is the net present value of the machine? Multiple Choice $(2,600). $(37,966). $7,966. $42,500. $(4,534).
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