Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company is considering the purchase of new equip

A company is considering the purchase of new equipment for $84,000. The projected after-tax net...

60.1K

Verified Solution

Question

Accounting

A company is considering the purchase of new equipment for $84,000. The projected after-tax net income is $4,300 after deducting $28,000 of depreciation. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of 1 for various periods follows: Periods Present value of an annuity of 1 at 9% 1 0.9174 2 1.7591 3 2.5313 What is the net present value of this machine assuming all cash flows occur at year-end?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

7-31 Consider the following LP problem: Maximize profit=5X+6Y subject to2X+Y≤120, 2X+3Y≤240X,Y≥0 What is the optimal solution to this...

Basic Math
Q

What are the names of A&B what is this device? what is the name of (a...

Medical Sciences
Q

Zn|Zn2+(1.00M)|| UO22+(1.00M), U4+(0.1M), H3O+(1.00M) |Pt a) Calculate the potential in the following cell (no current is flowing) b)...

Chemistry
Q

Question 1 The benefits of adopting Total Quality Management (TQM) strategies and approaches for organizations can aptly...

General Management
Q

54 Four point masses of value 2 5 6 and 3 kg are placed at...

Physics
Q

One mole of a monoatomic gas is carried along process ABCDEA as shown in the...

Physics
Q

Use Gauss-Jordan elimination to find the solution to the following system of equations.9x + 20y...

Basic Math
Q

Suppose that i 57 4j and v 6i 7j are given Compute the given linear...

Algebra
Q

Martinez Company accumulates the following summary data for the yoar ending December 31,2022, for its...

Accounting
Q

This information relates to the 24 questions below: SolaMin CC is a profitable...

Accounting
Q

The accountant for Huckleberry Company is preparing the company's statement of cash flows for the...

Accounting
Q

Disscussion froums List the correct steps in order to create the Customer...

Accounting