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

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What is the net present value of this machine assuming

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 assuming

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

Reference No:- TGS0685773

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Recent Questions Asked Accounting Basics

Q : Explain the contribution margin ratio

Q : Why would an increase in sales resulting from offering

Q : The amount deductible

Q : Determine the activity of a radioactive source

Q : What is the net present value of this machine assuming

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Q : What amount will net income increase

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Q : Determine for each plan the earnings per share

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Request for Solution File

Ask an Expert for Answer!!

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

Reference No:- TGS0685773

Recent Questions Asked Accounting Basics

Q : Explain the contribution margin ratio

Q : Why would an increase in sales resulting from offering

Q : The amount deductible

Q : Determine the activity of a radioactive source

Q : What is the net present value of this machine assuming

Q : Explain the commission for each unit of product

Q : What amount will net income increase

Q : Determine the annual rate of return for each project

Q : Determine for each plan the earnings per share

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