TB MC Qu. 24-112 A company is considering... A company is considering the purchase of new equipment for $96,000. The projected annual net cash flows are $37700. The machine has a useful life of 3 years and no salvage value Management of the company requires a 8% return on investment. The present value of an annuity of St for various periods follows: Period 1 2 3 Present value of an annuity of $1 at 8% 0.9259 1.7833 2.5771 What is the net present value of this machine assuming all cash flows occur at year-end? Poe Company is considering the purchase of new equipment costing $82,500. The projected annual cash inflows are $32.700, 10 be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments The present value of $1 and present value of an annulty of S1 for different periods is presented below. Compute the net present value of the machine Periods 1 Present Value of $1 at 10% 0.9091 0.8264 0.7513 0.5830 Present Value of an Annuity of $1 at 10% 2.9091 1.7355 2.4869 3.1699 Nm