A company is considering investing in a machine which costs 90,000 now and is expected to have

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A company is considering investing in a machine which costs £90,000 now and is expected to have cash inflows over the next 4 years as follows:

year 1 cash inflow £33000,

year 2 cash inflow £25000,

year 3 cash inflow £21000,

year 4 cash inflow £42000.

The discount rate is 15%. Using the net present value (NPV) method, would you advise the firm to invest in the machine?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Nov 16, 2023 11:13 PM

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A company is considering investing in a machine which costs 90,000 now and is expected to have

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Calculating NPV 1 Calculate the present value of each cash inflow usi... View the full answer

Fundamentals of Financial Management

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