s The cost of money is 10% per year.Machine PMachine OInitial cost, $-35,000-66,000Annual cost, $/year-20,000-15.000Salvage value, $10.00023.0004Life, yearsIn comparing the machines on a present worth basis, the present worthof machine P is closest to:($82,130)($87,840)($112,230)($91,568)

The present worth means the present value of all the future cash flows of the asset. In the present…

The cost of money is 10% per year. Machine P Machine Q Initial cost, $ -35,000 -66,000 Annual cost, $/year -20,000 15,000 Salvage value, $ 10,000 23,000 Life, years 2 4 In comparing the machines on a present worth basis, the present worth of machine P is closest to: ($82,130) O ($87,840) ($112,230) ($91,568)

The cost of money is 10% per year. Machine P Machine Q Initial cost, $ -35,000 -66,000 Annual cost, $/year -20,000 15,000 Salvage value, $ 10,000 23,000 Life, years 2 4 In comparing the machines on a present worth basis, the present worth of machine P is closest to: ($82,130) O ($87,840) ($112,230) ($91,568)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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