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What is the net present value of the machine

Fossa Road Paving Company is considering an investment in a curb-forming machine. The machine will cost $240,000, will last 10 years, and will have a $40,000 salvage value at the end of 10 years. The machine is expected to generate net cash inflows of $60,000 per year in each of the 10 years. Fossa"s discount rate is 18%. What is the net present value of this machine?

A) $5,840

B) $37,280

C) $(48,780)

D) $69,640

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the net present value of the machine

Reference No:- TGS0671284

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the net present value of the machine

Reference No:- TGS0671284

Recent Questions Asked Finance Basics

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