Shirt co. wants to purchase a new sewing machine
January 7th, 2018
Q. Shirt co. wants to purchase a new sewing machine for its sewing plant. The investment is expected to generate annual net cash inflows of $30,000 adn have a useful life of 8 years, and an estimated salvage value of $10,000. If Shirt Co. has a required rate of return of 12%, the maximum amount they will be willing to spend for this machine is what?