2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV? A. $2,361  B. -$100,378 C. -$121,987 D. -$48,271

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. Data: Lower control limit = 30, upper control

       limit = 33; overall sample mean = 31, standard

       deviation = 0.5. Calculate Cpk using z=3. Is the

       process capable? What is the Cpk?

Yes, 1.33

No, 1.33

Yes, 0.67

No, 0.67

2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV?

A. $2,361 

B. -$100,378

C. -$121,987

D. -$48,271

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