Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of
The following present value factors are provided for use in this problem.
Periods | Present Value of $1 at 8% | Present Value of an Annuity of $1 at 8% |
1 | 0.9259 | 0.9259 |
2 | 0.8573 | 1.7833 |
3 | 0.7938 | 2.5771 |
4 | 0.7350 | 3.3121 |
Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,000 in each of the four years. What is the machine's net present value?
Multiple Choice
-
$3,480.
-
$2,745.
-
$40,480.
-
($3,480).
-
($2,745).
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