Xavier Co. wants to purchase a machine for $37,900 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur

Question

3 years ago

11

Xavier Co. wants to purchase a machine for $37,900 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur

n on investment. The expected year-end net cash flows are $12,900 in each of the four years. What is the machine's net present value

Business

1 answer:

ale4655 [162] · Answer 1 · 2022-03-23T08:31:01+03:00

Answer:

Net present value of machine is $5,561

Explanation:

Net present value is the method of calculating net of cash inflows and outflows in present value term using discounting of the cash flow by required rate of return.

Net Present Value of the machine is $5,561

All the calculation and workings are attached with this question please find it.