2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV? A. $2,361 B. -$100,378 C. -$121,987 D. -$48,271
2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV? A. $2,361 B. -$100,378 C. -$121,987 D. -$48,271
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
1. Data: Lower control limit = 30, upper control
limit = 33; overall sample mean = 31, standard
deviation = 0.5. Calculate Cpk using z=3. Is the
process capable? What is the Cpk?
Yes, 1.33
No, 1.33
Yes, 0.67
No, 0.67
2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV?
A. $2,361
B. -$100,378
C. -$121,987
D. -$48,271
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