a company can buy a machine that is expected to have a three-year life and a 30,000 salvage value. the machine will cost 1,80,00 and is expected to produce a 200,000 after-tax net income to be received at the end of each year. what is the net present value of the cash flows from the investment, discounted at 12%? Choices 118,855 705,391 583,676 1,918,855 629,788
a company can buy a machine that is expected to have a three-year life and a 30,000 salvage value. the machine will cost 1,80,00 and is expected to produce a 200,000 after-tax net income to be received at the end of each year. what is the net present value of the cash flows from the investment, discounted at 12%? Choices 118,855 705,391 583,676 1,918,855 629,788
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3P
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a company can buy a machine that is expected to have a three-year life and a 30,000 salvage value. the machine will cost 1,80,00 and is expected to produce a 200,000 after-tax net income to be received at the end of each year. what is the
Choices
- 118,855
- 705,391
- 583,676
- 1,918,855
- 629,788
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