The Acu Punct Corporation is considering the purchase - 4447

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Wed 28 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

The Acu Punct Corporation is considering the purchase of a new machine with an initial outlay of $4500 and expected cash flows in years 1-4 of $2200 per year. The risk-adjusted discount rate for the firm is 12%, and the risk-free rate is 5%. Compute the net present value of this project. 

a. 4300 

b. 2181 

c. 1899 

d. 1535 

 
Solution Description

The Acu Punct Corporation is considering the purchase of a