Ask Question
8 July, 06:06

Vextra corporation is considering the purchase of new equipment costing $44,500. the projected annual cash inflow is $12,900, to be received at the end of each year. the machine has a useful life of 4 years and no salvage value. vextra requires a 12% return on its investments. the present value of an annuity of $1 for different periods follows: periods 12% 1 0.8929 2 1.6901 3 2.4018 4 3.0373 what is the net present value of the machine?

+5
Answers (1)
  1. 8 July, 07:24
    0
    Net present value is

    Present value of annual cash flows-project investment

    Net present value

    12,900*3.0373-44,500 = (5,319)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Vextra corporation is considering the purchase of new equipment costing $44,500. the projected annual cash inflow is $12,900, to be ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers