The following present value factors are provided for use in this problem. ...
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Accounting
The following present value factors are provided for use in this problem.
| Periods | Present Value of $1 at 8% | Present Value of an Annuity of $1 at 8% | ||||
| 1 | 0.9259 | 0.9259 | ||||
| 2 | 0.8573 | 1.7833 | ||||
| 3 | 0.7938 | 2.5771 | ||||
| 4 | 0.7350 | 3.3121 | ||||
Xavier Co. wants to purchase a machine for $37,600 with a four year life and a $1,000 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,600 in each of the four years. What is the machine's net present value?
Multiple Choice
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$(4,132).
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$42,467.
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$4,867.
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$(4,867).
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$4,132.
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