Find the net present value of the investment, Accounting Basics

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Find the net present value of the investment

A machine will cost $45,000 and is expected to generate equal annual cash flows of $15,000 at the end of each of the next five years. In addititon, the machine is expected to have a salvage value of $8,000 at the end of the fifth year. determine the net present value of this investment, assuming an interest rate of 20%.

A. $(14,850)

B. $(135)

C. $3,081

D. $23,793

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Accounting Basics: Find the net present value of the investment

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Accounting Basics: Find the net present value of the investment

Reference No:- TGS090337

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Valuation of noncontrolling interests

Q : Non-controlling interest in net income measured by gaap

Q : Subsidiary land and inventory

Q : Acquisition cost over book value

Q : Find the net present value of the investment

Q : Determining the present value of the investment

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Q : What is the interest expense on the bonds

Q : Accounts receivable approach to estimate the bad debts

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Find the net present value of the investment

Reference No:- TGS090337

Recent Questions Asked Accounting Basics

Q : Valuation of noncontrolling interests

Q : Non-controlling interest in net income measured by gaap

Q : Subsidiary land and inventory

Q : Acquisition cost over book value

Q : Find the net present value of the investment

Q : Determining the present value of the investment

Q : Events using the fair value method

Q : What is the interest expense on the bonds

Q : Accounts receivable approach to estimate the bad debts

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