You are considering investing in a machine that will significantly reduce your company's costs. The cash flows are as follows: Investment amount: $80,000. Cash flows: Year 1: $30,000; Year 2: $35,000; Year 3: $50,000. Given a cost of capital of 15%, calculate the NPV of the project.

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the cash flows to t... View the full answer