Purchase price of the machine

Reference no: EM13127824

Stratford Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $90,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is $170,000?

A. $221,950

B. $170,000

C. $268,120

D. $438,120

Reference no: EM13127824

Questions Cloud

How much energy would be required to vaporize water : The standard molar heat of vaporization for water is 40.79 kJ/mol. How much energy would be required to vaporize 29.0 g of water?Answer in units of kJ.

Work as a journalist : As I used to work as a journalist, I am familiar with the photography. When comes to vision ability, I imagine our brain as a darkroom. Because it is in darkness and light sensitive, brain works similar to a darkroom.

Calculate the value of dg° for the reaction : The equilibrium constant at 427°C for the reaction N2(g) + 3H2(g) 2NH3(g) is Kp = 9.4 × 10-5. Calculate the value of ΔG° for the reaction under these conditions.

What is the required flow rate of cooling water : What is the required flow rate of cooling water to the exchanger between the wasteheat boiler and the absorber and how much heat must be removed by the two heat exchangers cooling the recycled absorber liquid? Why is there a need to remove this heat?

Purchase price of the machine : what is the purchase price of the machine if the net present value of the investment is $170,000?

Product of two functions example : A formula is derived for the n-th derivative of a function that is a product of two other functions, f(x)=u(x).v(x). This formula is used to write down the n-th derivative of f(x) = e^x/(1 − x).

What is the volume of this air in the lungs at 37oc : One a cold day a person takes a breath of 450 ml of air at a pressure of 745 mm Hg and room temperature of 21oC. What is the volume of this air in the lungs at 37oC and 758 mm Hg?

Find probability at least two of stocks increase in value : Chances to increase in value, decrease in value, or remain the same. Estimate the probability at least two of the stocks increase in value.

Net present value of the equipment : The new equipment is expected to generate cost savings of $20,000 per year in each of the 6 years. Kumanu's discount rate is 16%. What is the net present value of this equipment?

User Account

All Pages