What is the net present value of this machine, Financial Accounting

Assignment Help:

A company is considering the purchase of new equipment for $45,000. The projected after-tax net income is $3,000 after deducting $15,000 of depreciation. 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:

What is the net present value of this machine assuming all cash flows occur at year-end?
A. $(1,768)
B. $3,000
C. $15,000
D. $18,000
E. $43,232


Related Discussions:- What is the net present value of this machine

Case., VK Ltd a multi-product Company, furnishes you the following data rel...

VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000. First Half of the year Second Half of the year Sales Rs. 4

Estimate present value, Calculating Present Value [LO1]  An investment will...

Calculating Present Value [LO1]  An investment will pay you $43,000 in 10 years.  If the appropriate discount rate is 7 percent compounded daily, what is the present value?

Balance Sheet & Statement of Cash Flows, I need some guidance in how certai...

I need some guidance in how certain events are to be recorded on both the balance sheet and statement of cash flows.

Effects of the appointment of the receiver-bankruptcy, Effects of the appoi...

Effects of the appointment of the receiver Floating charges: these crystallise on the appointment of a receiver and become fixed on the assets then in the hands of the compan

How the following situations should be reported, You have just started work...

You have just started work for Warren Co. as part of the controller's group involved in current financial reporting problems. Jane Henshaw, controller for Warren, is interested in

Estimate cost of equity using dividend valuation model, Q. Estimate cost of...

Q. Estimate cost of equity using dividend valuation model? The cost of equity may be approximate using either the dividend valuation model or the capital asset pricing model. I

The partnership deed, The Partnership Deed It is the agreement that reg...

The Partnership Deed It is the agreement that regulates the partner’s actions in undertaking the partnership business. This may or may not have been drawn up.  It usually conta

Accounting standards in the united states, Which of the following was the f...

Which of the following was the first private sector entity that set accounting standards in the United States? a. Accounting Principles Board b. Committee on Acocounting Procedure

Assess the liquidity and solvency of the company, Students are to prepare a...

Students are to prepare and report as a financial advisor to an investor as to whether the public company selected is a suitable investment for the investor. In preparing the essay

Which statements is correct, In its first month in business, Jones, Inc. so...

In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd