The following present value factors are provided for use in this problem. Cliff Co.wants to purchase a machine for $40,000,but needs to earn an 8% return.The expected year-end net cash flows are $12,000 in each of the first three years,and $16,000 in the fourth year.What is the machine's net present value (round to the nearest whole dollar)?
A)$(9,075).
B)$2,685.
C)$42,685.
D)$(28,240).
E)$52,000.

Question

The following present value factors are provided for use in this problem.  Cliff Co.wants to purchase a machine for $40,000,but needs to earn an 8% return.The expected year-end net cash flows are $12,000 in each of the first three years,and $16,000 in the fourth year.What is the machine's net present value (round to the nearest whole dollar)?
A)$(9,075). 
B)$2,685. 
C)$42,685. 
D)$(28,240). 
E)$52,000.

Quizplus · Accepted Answer

The Answer of The following present value factors are provided for use in this problem.  Cliff Co.wants to purchase a machine for $40,000,but needs to earn an 8% return.The expected year-end net cash flows are $12,000 in each of the first three years,and $16,000 in the fourth year.What is the machine's net present value (round to the nearest whole dollar)?
A)$(9,075). 
B)$2,685. 
C)$42,685. 
D)$(28,240). 
E)$52,000.

The Following Present Value Factors Are Provided for Use in This