A Machine Costs $25 000

question 62

Multiple Choice

A machine costs $25 000. It is expected to generate annual revenue of $8000 and annual expenses of $2000 each year for five years. The required rate of return is 12 per cent. What is the net present value of the machine?

• A) $21 630
• B) $28 840
• C) ($3370)
• D) $3840

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Definitions:

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