What is the present value of the COST of the machine if the interest rate is 3% 7% and 11%? After you have owned the machine for 6 years you expect to sell it for scrap for $1,000 (you scrap it at the same time you get the last $3420 return.) The present value of the RETURNS at 3% is 19,364.28 7% is 16,967.91 11% is 15,003.08 The present value of the COST at the interest rate is 3% 15,051.00 So What is the cost of the interest rate is 7% and 11%