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Business, 07.08.2021 02:10 cravens511peeelg

Vextra Corporation is considering the purchase of new equipment costing $38,500. The projected annual cash inflow is $11,700, 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%
1 0.8929
2 1.6901
3 2.4018
4 3.0373

What is the net present value of the machine?

a. $(36,751).
b. $(3,000).
c. $40,500.
d. $6,751.
e. $(3,749).

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