Akers Company Is Considering Purchasing a Machine $1 \quad \$ 30,000$

question 150

Multiple Choice

Akers Company is considering purchasing a machine. The machine will produce the following cash flows: Year $1 \quad \$ 30,000$
Year $2 \quad \$ 45,000$ Akers requires a minimum rate of return of 10%. What is the maximum price Akers should pay for this machine?

• A) $64,462.95
• B) $27,272.70
• C) $75,000.00
• D) $37,500.00

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