ABC Corp wants to buy a machine to produce umbrellas. The machine costs $130,000 and will cost $7,500 to install. Once in place, the machine will produce an income of $25,000 every year. ABC Corp expects to sell the machine after 5 years for $20,000 (ignore taxes). Given that the expected return is 2%, what is the NPV of this project?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount the cash flows f... View the full answer