Boston Company is contemplating the purchase of a new machine on which the following information has been gathered: The company's discount rate is 16%,and the machine will be depreciated using the straight-line method.Given these data,the machine has a net present value of:
A) ($26,100).
B) ($23,900).
C) $0.
D) $26,100.

Question

Boston Company is contemplating the purchase of a new machine on which the following information has been gathered:  The company's discount rate is 16%,and the machine will be depreciated using the straight-line method.Given these data,the machine has a net present value of:
A) ($26,100). 
B) ($23,900). 
C) $0. 
D) $26,100.

Quizplus · Accepted Answer

The Answer of Boston Company is contemplating the purchase of a new machine on which the following information has been gathered:  The company's discount rate is 16%,and the machine will be depreciated using the straight-line method.Given these data,the machine has a net present value of:
A) ($26,100). 
B) ($23,900). 
C) $0. 
D) $26,100.

Boston Company Is Contemplating the Purchase of a New Machine