Rymer, inc. is considering a new assembler, which costs $180,000 installed, - 4443

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  • Posted on: Wed 28 Mar, 2012
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Request Description

Rymer, inc. is considering a new assembler, which costs $180,000 installed, and has a depreciable life of 5 years. The expected annual after-tax cash flows for the assembler are $60,000 in each of the 5 years and nothing thereafter. Calculate the net present value (NPV) of the assembler if the required rate of return is 14%. Round to the nearest ten dollars. 

a. $25,200 

b. $25,980 

c. $51,960 

d. $120,000 

 
Solution Description

Rymer, inc. is considering a new assembler, which costs $180,000 installed,