Vextra Corporation is considering the purchase of new equipment costing $35,000.The projected annual cash inflow is $11,000,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows: What is the net present value of the machine (rounded to the nearest whole dollar)?
A)$(33,410).
B)$(3,100).
C)$35,000.
D)$3,410.
E)$(1,590).

Question

Vextra Corporation is considering the purchase of new equipment costing $35,000.The projected annual cash inflow is $11,000,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:  What is the net present value of the machine (rounded to the nearest whole dollar)?
A)$(33,410). 
B)$(3,100). 
C)$35,000. 
D)$3,410. 
E)$(1,590).

Quizplus · Accepted Answer

The Answer of Vextra Corporation is considering the purchase of new equipment costing $35,000.The projected annual cash inflow is $11,000,to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:  What is the net present value of the machine (rounded to the nearest whole dollar)?
A)$(33,410). 
B)$(3,100). 
C)$35,000. 
D)$3,410. 
E)$(1,590).

Vextra Corporation Is Considering the Purchase of New Equipment Costing