What is the net present value of this machine assuming

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40] A company is considering the purchase of new equipment for $90,000. The projected annual net cash flows are $35,500. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 12% return on investment. The present value of an annuity of 1 for various periods follows:

Periods	Present value of an 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?

$30,000

$4,500

$(4,736)

$34,500

$82,862

Reference no: EM131022279

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