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

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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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 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

 

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