What is the net present value of this machine, Accounting Basics

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What is the net present value of this machine

A company is considering the purchase of new equipment for $45,000. The projected after-tax net income is $3,000 after deducting $15,000 of depreciation. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 12% return on investment. The present value of an annuity of 1 for various periods follows:
PERIOD PRESENT VALUE OF AN ANNUITY OF 1 at 12%
1 0.8929
2 1.6901
3 2.4018

What is the net present value of this machine assuming all cash flows occur at year-end?

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Accounting Basics: What is the net present value of this machine

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Accounting Basics: What is the net present value of this machine

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Recent Questions Asked Accounting Basics

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Accounting Basics: What is the net present value of this machine

Reference No:- TGS065534

Recent Questions Asked Accounting Basics

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