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X Company is considering the purchase of a new machine that would enable the company to increase production and sales of one of its products
X Company is considering the purchase of a new machine that would enable the company to increase production and sales of one of its products by 5,910 units; contribution margin of this product is $5.00 per unit. The machine would cost $150,000, last for four years, and have zero salvage value at the end of its life. 8. Assuming a discount rate of 8%, what is the net present value of buying the new machine? A: $-40,826 B: $-46,133 C: $-52,130 | OD: $-58,907|| OE: $-66,565| OF: $-75,219 Submit Answer Tries 0/99 rate 9. the new machine will last for six years instead of four, what is the approximate inte return of buying it? A: 0.03|| OB: 0.04|| OC: 0.05| OD: 0.06 E: 0.07|| OF: 0.08 Submit Answer Tries 0/99
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