Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following present value factors are provided for use in this problem.   Periods Present Value of $1 at 11% Present Value of an Annuity of $1 at 11% 1   0.9009     0.9009   2   0.8116     1.7125   3   0.7312     2.4437   4   0.6587     3.1024       Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's net present value?   Multiple Choice $(3,351). $15,093. $77,093. $(43,556). $100,000.

The following present value factors are provided for use in this problem.   Periods Present Value of $1 at 11% Present Value of an Annuity of $1 at 11% 1   0.9009     0.9009   2   0.8116     1.7125   3   0.7312     2.4437   4   0.6587     3.1024       Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's net present value?   Multiple Choice $(3,351). $15,093. $77,093. $(43,556). $100,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

 

The following present value factors are provided for use in this problem.
 

Periods Present Value
of $1 at 11%		 Present Value of an
Annuity of $1 at 11%
1   0.9009     0.9009  
2   0.8116     1.7125  
3   0.7312     2.4437  
4   0.6587     3.1024  
 

 
Cliff Co. wants to purchase a machine for $62,000, but needs to earn a return of 11%. The expected year-end net cash flows are $24,000 in each of the first three years, and $28,000 in the fourth year. What is the machine's net present value?

 

Multiple Choice

  • $(3,351).

  • $15,093.

  • $77,093.

  • $(43,556).

  • $100,000.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS