A Company Is Considering the Purchase of New Equipment for $45,000.The

question 62

Multiple Choice

A company is considering the purchase of new equipment for $45,000.The projected annual net cash flows are $19,000.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)$634
• D)$19,000
• E)$45,634

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Definitions:

NULL Statement

A programming statement that performs no action, often used as a placeholder.

'\0'

The null character in programming, used to signify the end of a string.

Built-in Operations

Operations provided by programming languages that are implemented internally, offering basic functionality like arithmetic operations or data type conversions.