Question
The management of Avanwas Cargoration is cunsidering the purchase eta new machine osting Susu.00u. The wimpary's desived rate ef renirs is 10%. The prssene value
The management of Avanwas Cargoration is cunsidering the purchase eta new machine osting Susu.00u.
The wimpary's desived rate ef renirs is 10%. The prssene value fisars for St at compound interest of 10% Ise I through 5 years are 0.909, 0.335, 8751, 0685, mi 0191, ropestively: Is addition to the fineeing information, use the following dine in denunmiting the accoguility in this situations
Net Cash
Bacone foe
Operations
5100,000
40.000
40,000
10.000
10,000
Elos
$180,000
120,000
100,000
90.000
120.000
What is the net present value for this investment?
a positive $36,400 b. negative $126,800 c. positive $55,200 & negative $16,170
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