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 1 year ago

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