Question: Armstrong LLC is purchasing a new machine for $180,000. The new machine would generate cash flows of $100.000 for each of the next three years.
Armstrong LLC is purchasing a new machine for $180,000. The new machine would generate cash flows of $100.000 for each of the next three years. Armstrong uses a discount rate of 15%. What is the present value index? Prent Value laterat Facters Period 296 6 9% 125 15% 20% 8333 6944 S787 .7599 1 2 3 4 S 6 7 8 9 10 11 12 13 74 75 16 17 18 19 20 9804 9615 .9612 .9246 94123 8890 9238 8548 .9057 8319 8880 7903 .8706 8535 .7307 8363 .7026 8203 .6756 .8043 .6496 .7885 .6246 7730 .6006 .7579 .5775 .7430 .5553 .7284 .5339 .7142 .5134 .7002 .4936 .6864 .4746 .6730 4564 947 1900 3396 7921 7473 7050 5651 6274 5919 5594 5268 4970 4689 4423 4173 3936 3714 3503 3305 3118 9299 B573 7938 7350 6806 6302 5835 S403 5002 4632 4299 3971 3677 3405 3152 2919 2703 2502 2317 2145 10% .9091 8261 .7513 .6830 .6209 .5645 5132 4665 4241 3655 .3505 3186 2897 .2633 .2394 .2176 .1978 .1799 .1635 .1486 3929 7972 7118 6355 5674 5066 4523 4039 3606 3220 2875 2567 2292 2016 .1827 .1631 .1456 .1300 .1161 .0037 1696 7561 6575 5718 1972 4373 3759 3269 2813 2472 2149 .1869 .1625 .1417 .122 .1069 1929 0808 0703 0611 1019 3349 2791 2326 .1938 .1615 .1346 .1122 .0935 ,0779 .0649 .0541 .0451 .0376 0313 .0261 Select one: O a. 1.17 O b. 1.27 O c. 1.37 O d. 1.47
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