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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 | ||||
Cliff Co. wants to purchase a machine for $48,000, but needs to earn an 8% return. The expected year-end net cash flows are $17,000 in each of the first three years, and $21,000 in the fourth year. What is the machine's net present value?
Multiple Choice
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$(32,565).
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$59,246.
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$11,246.
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$72,000.
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$(4,189).
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