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Pristine Products Is Considering the Purchase of a New Machine

question 69

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Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows: Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows:   The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15%, what is the expected net present value of the machine? (ignore taxes)  A)  $6,914 B)  $6,253 C)  $(2,757)  D)  $4,200 The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15%, what is the expected net present value of the machine? (ignore taxes)


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