2. A company determines that the maximum they should pay for a new machine is $46,679. The company estimates the machine will produce a net cash flow of $8,000 per year and will last for 7 years. The interest rate that is acceptable to the company is 5%. At the end of 7 years the company estimates it will be able to sell the machine for what amount? A. $980 В. $391 С. S1,186 D. $ 68 E. $550
2. A company determines that the maximum they should pay for a new machine is $46,679. The company estimates the machine will produce a net cash flow of $8,000 per year and will last for 7 years. The interest rate that is acceptable to the company is 5%. At the end of 7 years the company estimates it will be able to sell the machine for what amount? A. $980 В. $391 С. S1,186 D. $ 68 E. $550
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11PA: Gallant Sports s considering the purchase of a new rock-climbing facility. The company estimates...
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![A company determines that the maximum they should pay for a new machine is $46,679. The company
estimates the machine will produce a net cash flow of $8,000 per year and will last for 7 years. The
interest rate that is acceptable to the company is 5%. At the end of 7 years the company estimates it
will be able to sell the machine for what amount?
2.
A. $980
В. $391
С. S1,186
D. $ 68
E. $550](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64493c82-ae9f-4de1-a1ce-9a1e251847f0%2F7f964386-b51e-4edd-8736-342516c21748%2Fdhq58pe_processed.png&w=3840&q=75)
Transcribed Image Text:A company determines that the maximum they should pay for a new machine is $46,679. The company
estimates the machine will produce a net cash flow of $8,000 per year and will last for 7 years. The
interest rate that is acceptable to the company is 5%. At the end of 7 years the company estimates it
will be able to sell the machine for what amount?
2.
A. $980
В. $391
С. S1,186
D. $ 68
E. $550
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