Raindrip Corp can purchase a new machine for $1,875,000 that will provide an annual net cash
flow of $650,000 per year for five years. The machine will be sold for $120,000 after taxes at the end
of year five.
What is the net present value of the machine if the required rate of return is 13.5%.
A) $513,859 B) $558,378 C) $473,498 D) $447,292
D
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A(n) ________ is an association of seagoing carriers that have joined together to offer common freight rates
A. independent line B. freight forwarder C. conference line D. free carrier
A loss sustained between the time of application and the delivery of an insurance policy may not be covered.
Answer the following statement true (T) or false (F)
A/An _____ contract is designed to provide access to expensive computer networks and software that single companies are unable to afford on their own
a. time and materials b. systems c. firm fixed price d. cost-sharing e. evergreen
The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The company will then increase its dividend by 10 percent per year for two years after which it will maintain a constant 2 percent dividend growth rate. What is one share worth today at a required rate of return of 14 percent?
A) $21.60 B) $15.17 C) $23.14 D) $23.95 E) $24.79