Company Y purchase machine with 7 year life. Will generate cash flows of 9000 each year over 7 years. No salvage value at end of 7 years. Discount rate 10%, what is the purchase price of the machine is the npv is 17,000
NPV = PV of inflows - purchase price
The inflows are $9,000 per year for ...
The solution explains how to calculate the purchase price given the NPV.