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 8%
Present Value of an Annuity of $1 at 8%
1
0.9259
0.9259
2
0.8573
1.7833
3
0.7938
2.5771
4
0.7350
3.3121
Xavier Co. wants to purchase a machine for $37,600 with a four year life and a $1,000 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,600 in each of the four years. What is the machine's net present value?
Multiple Choice
$(4,132).
$42,467.
$4,867.
$(4,867).
$4,132.
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