Question
the management of arkansas corporation is considering the purchase of a new machine costing 490000. the companys desired rate of return is 10%. the present
the management of arkansas corporation is considering the purchase of a new machine costing 490000. the companys desired rate of return is 10%. the present value factors for $1 at compound interest of 10% for years 1 - 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively . in addition to the foregoing info. use the following data in determining the acceptability of this investment. year 1: income from operations 100000, net cash flow 180000, year 2: income from operations 40000, net cash flow, year 3 income from operations: 40000, net cash flow 120000, year 4 income from operations: 10000 net cash flow 90000, year 5 income from operation :10000 net cash flow 120000, the present value for this investment is
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