Question: Please provide the correct answer, I will upvote the correct answer. Thank you! The management of Idaho Corporation is considering the purchase of a new
Please provide the correct answer, I will upvote the correct answer. Thank you!
The management of Idaho Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Income from Operations Year 1 2 $100,000 40,000 20,000 Net Cash Flow $180,000 120,000 100,000 90,000 90,000 3 4 10,000 10,000 5 The net present value for this investment is Oa. $25,200 Ob. $(99,600) Oc. $(126,800) Od. $16,400
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