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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 $36,000 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,000 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)? |
$1,315.
$433.
$37,315.
$(1,315).
$(433
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