A company is considering the purchase of new equipment for

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A company is considering the purchase of new equipment for $45,000. The projected after tax net in mod is $3,000 after deducting $15,000 of depreciation ther machine has a useful life of 3 years and no salvage value. Management of the company requiresa 12%return on investment the present value of annuity of 1 for the various periods follows

Period-present value of annuity of 1 at 12%

1.0.8929

2.1.6901

3.2.4018

What is the net present value of this machine assuming all cash flows occur at year end?

Reference no: EM13593497

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