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Business, 17.01.2020 18:31 fanofhope31

Butler corporation is considering the purchase of new equipment costing $45,000. the projected annual after-tax net income from the equipment is $1,700, after deducting $15,000 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 12% return on its investments. the present value of an annuity of 1 for different periods follows: periods 12 percent 1 0.8929 2 1.6901 3 2.4018 4 3.0373what is the net present value of the machine? a. $45,000. b. $(4,890). c. $36,027. d. $5,100. e. $40,110.

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