Solution-Determine the net present value for this

Determine the net present value for this investment is

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Reference no: EM132528683

The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively.

In addition to the foregoing information the following data is available.

Income from Net Cash

Year Operations Flow

1 $100,000 $180,000

2 40,000 120,000

3 20,000 100,000

4 10,000 90,000

5 10,000 90,000

Question 1: The net present value for this investment is:

Option A. positive $55,200

Option B. Negative $99,600

Option C. positive $36,400

Option D. Negative $126,800

Reference no: EM132528683

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Determine the net present value for this investment is

Reference no: EM132528683

Reference no: EM132528683

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