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(Ignore income taxes in this problem.) Frick Road Paving Corporation is considering an investment in a...

(Ignore income taxes in this problem.) Frick Road Paving Corporation is considering an investment in a curb-forming machine. The machine will cost $180,000, will last 10 years, and will have a $30,000 salvage value at the end of 10 years. The machine is expected to generate net cash inflows of $40,000 per year in each of the 10 years. Frick's discount rate is 10%. The net present value of the proposed investment is closest to:

$250,000

$65,800

$245,800

$77,380
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Answer #1

CASH FLOW FACTOR @ 10% PV CASH FLOW 6.145 S 245,800 0.3854$ 11,562 YEASR ANNAUL CASH INFLOW10-Jan SALVAGE INITIAL INVESTMENT

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