The companys discount rate is 16 and the machine will be, Ask an Expert

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Boston Company is contemplating the purchase of a new machine on which the following information has been gathered:

Cost of the machine $38,900
Annual cash inflows expected $10,000
Salvage value $5,000
Life of the machine 6 years

The company's discount rate is 16%, and the machine will be depreciated using the straight-line method. Given these data, what the machine has a net present value ?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M986180

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