The following present value factors are provided for use in this problem. Periods Present value of 1
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Question:
The following present value factors are provided for use in this problem. |
Periods | Present value of 1 at 12% | Present value of an annuity of 1 at 12% |
1 | 0.8929 | 0.8929 |
2 | 0.7972 | 1.6901 |
3 | 0.7118 | 2.4018 |
4 | 0.6355 | 3.0373 |
Norman Co. wants to purchase a machine for $70,000 but needs to earn a 12% return. The expected year-end net cash flows are $28,000 in each of the first three years and $32,000 in the fourth year. What is the machine's net present value (round to the nearest whole dollar)? |
$(2,750).
$17,586.
$87,586.
$(49,664).
$116,000.
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