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desiree3114
27.03.2020 •
Business
Stratford Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of $90,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is $170,000
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Ответ:
The price o the machine is = $268,157.69
Explanation:
The Net present value is the difference between the present value (PV) cash inflows and the initial cost of the investment.
PV of cash inflow =
90,000× (1- (1.1)^(-7) )/0.1
= 438,157.69
NPV = PV of cash inflow - cost of the machine
Let represent cost of the machine as " y "
170,000 = 438,157.69 - y
y = 438,157.69- 170,000
y = 268,157.69
The price o the machine is = $268,157.69
Ответ:
For what game?
Explanation: