Metro Company trades its used machine for a new model at Denver Solutions Inc. The used machine has a book value of $8,000 (original cost of $12,000, accumulated depreciation of $4,000) and a fair value of $6,000. The new model lists for $16,000.
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A company is considering two projects. Project I Project II Initial investment $120,000 $120,000 Cash inflow Year 1 $40,000 $20,000 Cash inflow Year 2 $40,000 $20,000 Cash inflow Year 3 $40,000 $32,000 Cash inflow Year 4 $40,000 $48,000 Cash inflow
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