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Question
Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:| Periods | 12 Percent |
| 1 | 0.8929 |
| 2 | 1.6901 |
| 3 | 2.4018 |
| 4 | 3.0373 |
What is the net present value of the machine (rounded to the nearest whole dollar)?
A.$(33,410).
B.$(3,100).
C.$35,000.
D.$3,410.
E.$(1,590).
Answer
This answer is hidden. It contains 149 characters.
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