Business, 30.11.2021 21:00 yourmumsanoodle
Vextra Corporation is considering the purchase of new equipment costing $44,500. The projected annual cash inflow is $12,900, 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
Compute the net present value of this investment (rounded to the nearest whole dollar).
A. $44,500.
B. $(2,200).
C. $(5,319).
D. $(39.181).
E. $12.2001.
Answers: 3
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Vextra Corporation is considering the purchase of new equipment costing $44,500. The projected annua...
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