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Calculating Net Present Value on Paving Company

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

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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.

$2.19