Final Exam

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TB MC Qu$.24-121$ Poe Company is considering the purchase of$...$

$4$

Poe Company is considering the purchase of new equipment costing $$84,500.$ The projected net cash flows are $$39,500$ for the first two years and $$34,500$ for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of $4$ years and no salvage value. Poe requires a

points

$10\%$ return on its investments. The present value of $$1$ and present value of an annuity of $$1$ for different periods is presented below. Compute the net present value of the machine.

$04$:$49$:$51$

References

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