What is the machine net present value

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Reference no: EM133027038

Question - The following present value factors are provided for use in this problem.

Periods

Present Value of $1 at 11%

Present Value of an Annuity of $1 at 11%

1

0.9009

0.9009

2

0.8116

1.7125

3

0.7312

2.4437

4

0.6587

3.1024

Cliff Co. wants to purchase a machine for $42,000, but needs to earn a return of 11%. The expected year-end net cash flows are $14,000 in each of the first three years, and $18,000 in the fourth year. What is the machine's net present value?

Reference no: EM133027038

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