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

Assignment Help:

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:

What is the net present value of this machine assuming all cash flows occur at year-end?
A. $(1,768)
B. $3,000
C. $15,000
D. $18,000
E. $43,232


Related Discussions:- What is the net present value of this machine

Report on the management of foreign trade risks, Q. Report on the managemen...

Q. Report on the management of foreign trade risks? Your company is probable to face three types of risk in connection with its foreign trade. These are as: (1) Foreign exch

Briarcrest condiments is a spice-making firm, 1. Briarcrest Condiments is a...

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,218,246. have a

Percent Gain, Assume you invest $150 per month in a stock. Stock prices are...

Assume you invest $150 per month in a stock. Stock prices are as follows: January $10.50, February $9.75, March $9.50, April $11.00, May $10.75, June $9.75, July $9.00, August $8.5

Public debt, effects of public debt on production, d

effects of public debt on production, d

Investment, compute the arithmetic mean rate of return and standard deviati...

compute the arithmetic mean rate of return and standard deviation of rates of return for the two series

Determine the net present value - cost of capital, What is the net present...

What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 p

Determine the present value - annuity, Assume you are receiving an amount ...

Assume you are receiving an amount of Rs.5000 twice in a year for subsequent five years one time at the starting of the year and another amount of Rs. 5000 at the ending of the yea

Revenues and production budget, The assignment requires a significant part...

The assignment requires a significant part of the work to be done in a spreadsheet. I have not nominated any particular vendoar or any particular version. The choice is up to you,

What is balance sheet, Q. What is Balance Sheet? Balance Sheet - Basic ...

Q. What is Balance Sheet? Balance Sheet - Basic FINANCIAL STATEMENT, generally accompanied by appropriate DISCLOSURES which describe the basis of ACCOUNTING used in its prepara

Show the capitalized cost, Q. Show the Capitalized Cost? Capitalized Co...

Q. Show the Capitalized Cost? Capitalized Cost - Expenditure identified with services or goods acquired and measured by theamount of cash paid or market value of other property

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd