A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year

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A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year by selling the products manufactured by using this machine.

If the discount rate is 12% and the machine lasts for 7 years, what is its equivalent annual annuity? Hint: you first need to find the NPV of the project.

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Aug 31, 2023 03:33 AM

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A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year

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Financial Accounting and Reporting a Global Perspective

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