A machine costs $1,000, has a three-year life, and has an estimated - 11697

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umer

umer

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Price: $1.20
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  • Posted on: Mon 25 Jun, 2012
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Request Description

A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.)

A.  -$150

B.  $900

C.  $490

D.  $570

 
Solution Description

A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It wi