Sigma is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,0

Question

3 years ago

13

Sigma is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,0

00 in year 1, $7,000 in the 2nd year, $5,000 in the 3rd year, and $3,000 in the 4th year. Should Sigma purchase this digger if its cost of capital is 12%? a. Yes, NPV = $5,084 b. Yes, NPV = $16,605 c. Yes, NPV = $3,176 d. Yes, NPV = $19,084

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1 answer:

Fofino [41] · Answer 1 · 2022-03-24T13:33:48+03:00

Fofino [41]3 years ago

8 0

Answer:

a

Explanation: