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spayn [35]
3 years ago
9

Michaels, Inc., purchased a machine for $75,000. The machine has a useful life of five years and no salvage value. Straight-line

depreciation is to be used. The machine is expected to generate cash flow from operations, net of income taxes, of $25,000 in each of the five years. Michaels' expected rate of return is 10%. Information on present value factors is as follows:
Period Present Value of $1 at 10% Present value of ordinary annuity of $1 at 10%
1 0.90909 0.90909
2 0.82645 1.73554
3 0.75132 2.48685
4 0.68301 3.16986
5 0.62092 3.79079


What would be the net present value?
Mathematics
2 answers:
bogdanovich [222]3 years ago
6 0
The net will be 0.0909
lys-0071 [83]3 years ago
6 0

Answer:

0.0909

Step-by-step explanation:

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