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?
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?
A) $3,480. 
B) $2,745. 
C) $40,480. 
D) ($3,480). 
E) ($2,745).

Quizplus · Accepted Answer

11eaadfd_cc6a_972d_95d8_f99fb1f7d6c5_TB6948_00

The Following Present Value Factors Are Provided for Use in This