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A Corporation is considering the purchase of a new machine costing $170,000. The machine would generate net cash inflows of $45,000 per year for 5
A Corporation is considering the purchase of a new machine costing $170,000. The machine would generate net cash inflows of $45,000 per year for 5 years. At the end of 5 years, the machine would have no salvage value. The corporations cost of capital is 6 percent. Using excel spreadsheet or financial calculator, what is the net present value for the investment? (round to the nearest dollar):
Select one:
a. $7,672
b. $19,556
c. $7,250
d. $(8,450)
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