Question: Help Save & Exit Submit Poe Company is considering the purchase of new equipment costing $85,000. The projected net cash flows are $40,000 for the

Help Save & Exit Submit Poe Company is considering the purchase of new equipment costing $85,000. The projected net cash flows are $40,000 for the first two years and $35,000 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 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. Periods Present Value of $1 at 108 0.9091 0.8264 0.7513 0.6830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 0.6830 3.1699

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