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The following present value factors are provided for use in this problem. Periods Present Value of $1 at 9% Present Value of an Annuity of
The following present value factors are provided for use in this problem.
Periods | Present Value of $1 at 9% | Present Value of an Annuity of $1 at 9% | ||||
1 | 0.9174 | 0.9174 | ||||
2 | 0.8417 | 1.7591 | ||||
3 | 0.7722 | 2.5313 | ||||
4 | 0.7084 | 3.2397 | ||||
Cliff Co. wants to purchase a machine for $66,000, but needs to earn an 9% return. The expected year-end net cash flows are $26,000 in each of the first three years, and $30,000 in the fourth year. What is the machine's net present value?
Multiple Choice
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$(186).
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$21,066.
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$87,066.
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$(44,748).
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$108,000.
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