Poe company is considering the purchase of new equipment costing $84,500. the projected annual cash inflows are $34700, to be received at the end of each year. the machine has a
useful life of 4 years and no salvage value. poe requires a 10% return on its investments. the present value of $1 and present value of an annuity of s1 for different periods is presented
below. compute the net present value of the machine
periods
present value
of $1 at 10%
0.9991
0.8264
0.7513
8.6830
present value of an
annuity of $1 at 10%
0.9991
1.7355
2.4869
3.1699