Paige Company is contemplating the acquisition of a machine that costs $51,000 a

Question

Paige Company is contemplating the acquisition of a machine that costs $51,000 and promises to reduce annual cash operating costs by $12,000 over each of the next 5 years. Which of the following is a proper way to evaluate this investment if the company desires a 14% return on all investments? (Round PV factors to 3 decimal places.) $51,000 vs. $12,000 Times 3.433. $51,000 vs. $60,000 Times 3.433. $51,000 vs. $12,000 Times 5. $51,000 Times 0.877 vs. $12,000 Times 3.433. $51,000 vs. $60,000 x 0.519.

Explanation / Answer

$51,000 vs $12,000*3.433

initial investment vs cash inflows annual *Present value of cash flows with 14% intrest .

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.