Essay
Mammoth Company is considering the acquisition of two machines.
Assume straight-line depreciation.Ignore income taxes.The present value of an ordinary annuity at 14% and 5 periods is 3.4331.The present value of one at 14% and 5 periods is 0.5194.
Required:
A)Calculate the net present value for both machines.
B)Which is the best alternative?
Correct Answer:
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A) Machine A: Net present value = [($90,...View Answer
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Correct Answer:
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