The following present value factors are provided for use in this problem. Periods Present Value of $1 at 11% Present Value of an Annuity of $1 at 11% 1 0.9009 0.9009 2 0.8116 1.7125 3 0.7312 2.4437 4 0.6587 3.1024 Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's net present value? Multiple Choice $(3,351). $15,093. $77,093. $(43,556). $100,000.
The following present value factors are provided for use in this problem. Periods Present Value of $1 at 11% Present Value of an Annuity of $1 at 11% 1 0.9009 0.9009 2 0.8116 1.7125 3 0.7312 2.4437 4 0.6587 3.1024 Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's net present value? Multiple Choice $(3,351). $15,093. $77,093. $(43,556). $100,000.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EA: A mini-mart needs a new freezer and the initial Investment will cost $300,000. Incremental revenues,...
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The following present value factors are provided for use in this problem.
Periods | Present Value of $1 at 11% |
Present Value of an Annuity of $1 at 11% |
||||
1 | 0.9009 | 0.9009 | ||||
2 | 0.8116 | 1.7125 | ||||
3 | 0.7312 | 2.4437 | ||||
4 | 0.6587 | 3.1024 | ||||
Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's
Multiple Choice
-
$(3,351).
-
$15,093.
-
$77,093.
-
$(43,556).
-
$100,000.
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