The following present value factors are provided for use in this problem. Xavier Co.wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value.Xavier requires an 8% return on investment.The expected year-end net cash flows are $12,000 in each of the four years.What is the machine's net present value (round to the nearest whole dollar)?
A)$3,480.
B)$2,745.
C)$40,480.
D)$(3,480).
E)$(2,745).

Question

The following present value factors are provided for use in this problem.  Xavier Co.wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value.Xavier requires an 8% return on investment.The expected year-end net cash flows are $12,000 in each of the four years.What is the machine's net present value (round to the nearest whole dollar)?
A)$3,480. 
B)$2,745. 
C)$40,480. 
D)$(3,480). 
E)$(2,745).

Quizplus · Accepted Answer

The Answer of The following present value factors are provided for use in this problem.  Xavier Co.wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value.Xavier requires an 8% return on investment.The expected year-end net cash flows are $12,000 in each of the four years.What is the machine's net present value (round to the nearest whole dollar)?
A)$3,480. 
B)$2,745. 
C)$40,480. 
D)$(3,480). 
E)$(2,745).

The Following Present Value Factors Are Provided for Use in This