ABC is now thinking about to purchase a new machine. The iniatial cost will be...
50.1K
Verified Solution
Link Copied!
Question
Accounting
ABC is now thinking about to purchase a new machine. The iniatial cost will be $293,255 . For the next 3 years ( start with next year) the meachine will have $131,968 of OCF each year. At the end of the third year, The machine can be sold for $98,635. Discount rate is 12%.
1. Calculate the net present value index for the machine.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!