Memphis Co

Memphis Co.is considering purchasing a machine for $83,200 that will increase cash inflows by $40,000 in the first year,$30,000 the second year,and $25,000 the third year.The machine will have no residual value.The minimum rate of return is 10 percent.The present value factors,at 10 percent,for the three years are 0.909,0.826,and 0.751,respectively.
-Using the above information for Memphis,the machine's net present value is

A) $21,800.
B) $(3,285) .
C) $79,915.
D) $(4,286) .

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free