Mathematics
Mathematics, 17.02.2021 23:30, mathhelpneeded66

A business owner is considering buying a machine that costs $30,000 upfront and will increase the business's revenue by $12,000 per year for the next 3 years (assume the firm's revenue is realized once per year at the end of each year). After the purchase of the machine, it doesn't cost the firm anything to use the machine. After 3 years, the machine can be resold for $1,000. Also, assume the business owner could instead buy a financial asset that earns 11% per year rather than buy the machine. What is the net present value of the machine?

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