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pishuonlain [190]
3 years ago
12

Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. T

he cost of the machine will be $150,000. The annual cost savings if the new machine is acquired will be $40,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a cost of capital of 10%, which of the following is closest to the net present value of the project?
a. $1,632
b. $12,418
C. $14,060
d. $150,000
Business
1 answer:
Burka [1]3 years ago
3 0

Answer:

c.$14,060

Explanation:

I hope my answer is correct

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Explanation:

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NPV= $5,493.79

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Explanation:

The question isn't complete. The full question can be found: https://www.chegg.com/homework-help/questions-and-answers/3-plastic-steel-substitutes-production-body-panels-certain-automobiles-price-plastic-incre-q31436687

Substitutes goods are goods that can be used in place of one another. If the price of plastic increases, consumers shift to steel, its demand increases and the supply curve shifts to the right.

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