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Business, 07.05.2021 02:00 mathman783

Vextra Corporation is considering the purchase of new equipment costing $38,000. The projected annual cash inflow is $11,600, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 12%
1 0.8929
2 1.6901
3 2.4018
4 3.0373

What is the net present value of the machine (rounded to the nearest whole dollar)?

a. $(35,233).
b. $(2,767).
c. $38,000.
d. $(3,700).
e. $5,233.

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Answers: 2

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