The following present value factors are provided for use in this problem. Present Value of $1 at 8% 0.9259 Present Value of an Annuity of $1 at 8% 0.9259 0.8573 1.7833 0.7938 2.5771 0.7350 3.3121 Periods 1 2 3 4 Xavier Co. wants to purchase a machine for $37,800 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,800 in each of the four years. What is the machine's net present value? Multiple Choice O O $4,595. $(5,477). $(4,595). $43,277.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following present value factors are provided for use in this problem.
Periods
1
2
3
4
Present Value
of $1 at 8%
0.9259
0.8573
0.7938
0.7350
Xavier Co. wants to purchase a machine for $37,800 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The
expected year-end net cash flows are $12,800 in each of the four years. What is the machine's net present value?
Multiple Choice
O
O
$4,595.
$(5,477).
$(4,595).
Present Value of an
Annuity of $1 at 8%
0.9259
1.7833
2.5771
3.3121
$43,277.
Transcribed Image Text:The following present value factors are provided for use in this problem. Periods 1 2 3 4 Present Value of $1 at 8% 0.9259 0.8573 0.7938 0.7350 Xavier Co. wants to purchase a machine for $37,800 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,800 in each of the four years. What is the machine's net present value? Multiple Choice O O $4,595. $(5,477). $(4,595). Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 $43,277.
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