A company wants to purchase a new machine at a cost of $92,000.Its goal is to reduce
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A company wants to purchase a new machine at a cost of $92,000. Its goal is to reduce expenses and increase net cash flow.
Specifically, the net cash flow for the next 4 months would be zero, while that for the end of months 5-12 would be $2,000. The next net cash flows would be $25,000 in 2 years, then $26,000 in 3 years, and $27,000 in 4 years. In 4 years, she also plans to resell the machine and obtain $46,000.
What is the net present value of the project, if the discount rate is 1% per month?
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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