Business, 06.08.2021 16:50, allenpaietonp9v8sv

Poe Company is considering the purchase of new equipment costing $84,500. The projected net cash flows are $39,500 for the first two years and $34,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine. Periods Present ValueÂ of 1 at 10% Present Value of anAnnuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.683 3.1699

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Poe Company is considering the purchase of new equipment costing $84,500. The projected net cash flo...