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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
Xavier Co. wants to purchase a machine for $38,000 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $13,000 in each of the four years. What is the machine's net present value?
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