Business, 30.11.2019 05:31 182075

The management of idaho corporation is considering the purchase of a new machine costing $430,000. the company's desired rate of return is 10%. the present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. in addition to the foregoing information, use the following data in determining the acceptability in this situation:
year income from operations net cash flow
1 $100,000 $180,000
2 40,000 120,000
3 20,000 100,000
4 10,000 90,000
5 10,000 90,000
the net present value for this investment is:
a. negative $126,800
b. negative $99,600
c. positive $16,400
d. positive $25,200

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The management of idaho corporation is considering the purchase of a new machine costing $430,000. t...

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