Butler Corporation is considering the purchase of new equipment costing $48,000. The projected annual after-tax net income from the equipment is $1,800, after deducting $16,000 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 11% return on its investments. The present value of an annuity of 1 for different periods follows: Periods11 Percent
10.9009
21.7125
32.4437
43.1024
What is the net present value of the machine?
a. $(4,502).
b. $48,000.
c. $5,400.
d. $43,498.
e. $39,099.

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.