Gage companys required rate of return is 14. if the net, Ask an Expert

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The Gage Company purchased a machine which will be depreciated by the straight-line method over its estimated 6 year life. The machine will have no salvage value. It will generate cash inflows of $7,000 each year over the next 6 years. Gage Company's required rate of return is 14%. If the net present value of this investment is $12,016,what was the purchase price of the machine ?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M962489

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