Interior Products, Inc. is evaluating the purchase of a new machine to use in its manufacturing process. The new machine would c

Question

3 years ago

13

Interior Products, Inc. is evaluating the purchase of a new machine to use in its manufacturing process. The new machine would c

ost $37,000 and have a useful life of 5 years. At the end of the machine's life, it would have a residual value of $2600. Annual cost savings from the new machine would be $12,200 per year for each of the six years of its life. Interior Products, Inc. has a minimum required rate of return of 16% on all new projects. The net present value of the new machine would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.)

Business

1 answer:

katrin [286] · Answer 1 · 2022-12-26T20:24:54+03:00

katrin [286]3 years ago

7 0

the answer is 4 because 4 plus 1 equal 8 and 2 plus 4 equal 4