A company can purchase a machine, which would yield net revenues of 5 0 , 0 0
Fantastic news! We've Found the answer you've been seeking!
Question:
A company can purchase a machine, which would yield net revenues of pa over the first two years and then pa for a further two years. After these four years of operation the machine can be scrapped for Using NP as the criterion when a discounting rate of pa is in operation, what is the maximum price that the company would be prepared to pay for such a machine?Note: Perform all the calculations without rounding any intermediate results. Round your final answer to two decimal places.
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9781292085050
13th Edition
Authors: Frank Wood, Alan Sangster
Posted Date: