The following present value factors are provided for use in this problem. ...
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Accounting
The following present value factors are provided for use in this problem.
Periods
Present Value of $1 at 10%
Present Value of an Annuity of $1 at 10%
1
0.9091
0.9091
2
0.8264
1.7355
3
0.7513
2.4869
4
0.6830
3.1699
Cliff Co. wants to purchase a machine for $64,000, but needs to earn an 10% return. The expected year-end net cash flows are $25,000 in each of the first three years, and $29,000 in the fourth year. What is the machine's net present value?
Multiple Choice
$17,980.
$104,000.
$81,980.
$(44,193).
$(1,827).
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