Compute net present value of investment for vextra corp

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Vextra Corporation is considering the purchase of new equipment costing $45,000. The projected annual cash inflow is $13,000, 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:

Periods

1        2%10.89

2        921.6901

3      2.4018

4      3.0373

Problem 1: Compute the net present value of this investment.

Reference no: EM132953878

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