Question
In: Economics
A company is evaluating the acquisition of a machine. The alternatives you have are two. The...
A company is evaluating the acquisition of a machine. The alternatives you have are two. The data is shown in the following table. Find the net present value of machine Y. (DISCOUNT RATE IS 10%) Concept Machine Y Initial Cost ($) - 46,000 Annual cost ($ / year) - 15,000 Salvage Value ($) 24,000 Life in years 3
Solutions
Expert Solution
Present Value of Machine Y:
Solving the above equation we get,
PV = $ 65,271.22464
Present Value of Machine Y is $ 65,271.22464
Rahul Sunny answered 2 years agoRelated Solutions
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