Business, 06.08.2021 18:10 frankierice020

Butler Corporation is considering the purchase of new equipment costing $42,000. The projected annual after-tax net income from the equipment is $1,600, after deducting $14,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 8% return on its investments. What is the net present value of the machine?
a. $4,800.
b. $42,000.
c. $36,079.
d. $(1,797).
e. $40,203.

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Butler Corporation is considering the purchase of new equipment costing $42,000. The projected annua...