Business, 10.08.2021 02:30 drodriguez2324

Butler Corporation is considering the purchase of new equipment costing $39,000. The projected annual after-tax net income from the equipment is $1,500, after deducting $13,000 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 9% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 9%
1 0.9174
2 1.7591
3 2.5313
4 3.2397

Required:
What is the net present value of the machine?

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Butler Corporation is considering the purchase of new equipment costing $39,000. The projected annua...

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