Social Studies, 09.10.2019 06:00 P05182010
Acloth manufacturing firm is deciding whether or not to invest in new machinery. the machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000. the firm's current fixed costs are $9,000 and current marginal costs are $15. the firm currently charges $18 per unit. if the interest rate is 5% then the present value of the cash flows is
a. 6,020.41
b. 51,020.41
c. -7380.95
d. 10,000
Answers: 3
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Acloth manufacturing firm is deciding whether or not to invest in new machinery. the machinery costs...
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