Vextra Corporation is considering the purchase of new equipment costing $36,500. The projected annual cash inflow is $11,300, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 12% 1 0.8929 2 1.6901 3 2.4018 4 3.0373 What is the net present value of the machine? Multiple Choice O $(34,321). O $(3,400). O $36,500. O $4,321.O $(2,179).

A series of cash flows that happen at various dates are subject to the net present value (NPV) or net present worth (NPW). The amount of time until a cash flow is expected determines its present value. The discount rate also plays a role. The temporal value of money is accounted for by NPV. It offers a tool for assessing and contrasting capital projects or financial products with cash flows distributed over time, such as loans, investments, insurance contract payouts, and many more applications.

CALCULATION:

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=11300[1-(1.12)^-4]/0.12

=11300*3.0373

=34321.49

NPV=Present value of inflows-Present value of outflows

=34321.49-36500

=($2,179)(Approx)(Negative).

To know more about net present value visit:

https://brainly.com/question/25748668

#SPJ4