A company is considering the purchase of new equipment for $78,000. The projected annual net cash flows

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A company is considering the purchase of new equipment for $78,000. The projected annual net cash flows are $31,100. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of $1 for various periods follows:

Period	Present value of an annuity of $1 at 9%
1	0.9174
2	1.7591
3	2.5313

What is the net present value of this machine assuming all cash flows occur at year-end?

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Posted Date: Mar 11, 2024 04:42 AM

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A company is considering the purchase of new equipment for $78,000. The projected annual net cash flows

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