A Machine That Costs $1,500,000 Has a 3-Year Life

question 21

Multiple Choice

A machine that costs $1,500,000 has a 3-year life.It will generate after-tax annual cash flows of $700,000 at the end of each year.It will be salvaged for $200,000 at the end of year 3.If your required rate of return for the project is 13%,what is the NPV of this investment?

• A) $291,417
• B) $400,000
• C) $600,000
• D) $338,395

---

Definitions:

Yes Or No

A type of question or decision that requires a simple affirmative or negative response.

Misdiagnosis

The incorrect identification of a disease or condition, leading to inappropriate treatment or management.

Pertinent Information

denotes relevant or applicable data and facts directly related to a specific matter or situation.

Responsible

Being accountable or liable for something within one's power, control, or management.