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Business, 19.12.2019 07:31 ajadegipson6784

Butler corporation is considering the purchase of new equipment costing $84,000. the projected annual after-tax net income from the equipment is $3,000, after deducting $28,000 for depreciation. the revenue is to be received at the end of each year. the machine has a useful life of 3 years and no salvage value. butler requires a 9% return on its investments. the present value of an annuity of 1 for different periods follows:

periods 9 | percent
1 | 0.9174
2 | 1.7591
3 | 2.5313
4 | 3.2397

what is the net present value of the machine? (closest to)

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