The following present value factors are provided for use in this problem.

Periods	Present value of $1 at 8%	Present Value of an Annuity of $1 at 8%
1	0.9259	0.9259
2	0.8573	1.7833
3	0.7938	2.5771
4	0.7350	3.3121

Xavier Co. wants to buy a machine for $37,000 with a useful life of four years and a salvage value of $1,000. Xavier requires an 8% return on investment. The expected net cash flows at the end of the year are $12,000 in each of the four years. 

What is the net present value of the machine?

Answer rating: 100% (QA)

To calculate the net present value NPV of the machine we need to find the present value PV of each c... View the full answer