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    Calculating Net Present Value on Paving Company

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    Paving Company is getting a paver. Machine will cost $240,000 and will last 10 years and will have a $40,000 salvage value at end of 10 years. Machine will generate net cash inflows of $60,000 per year in each of ten years. Discount rate is 18%.

    What is the net present value?

    A 5840
    B 37280
    C (48780)
    D 69640

    © BrainMass Inc. brainmass.com March 4, 2021, 7:51 pm ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/calculating-net-present-value-company-value-127545

    Solution Preview

    What is the net present value?

    A 5840
    B 37280
    C (48780)
    D ...

    Solution Summary

    The solution calculates the net present value for paving Company to get a new paver.

    $2.49

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