Assume a Company has an opportunity to buy a machine for $910,000. Anticipated cash flows for...

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Assume a Company has an opportunity to buy a machine for $910,000. Anticipated cash flows for Year 1 to Year 6 is listed below. In addition, the company can refurbish the equipment at the end of 6 years. Refurbishing the equipment will cost $102,000 and will generate $274,000 of cash flows in year 7. Finally, the equipment would have a residual value of $80,000 at the end of year 7. Assume the Company has a 16% required rate of return. What is the NPV of the project? A. $14,080. B. $55,900. C. $97,720. D. $924,080. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6. Net Cash Inflow/(outflow) $264,000 $252,000 $222,000 $210,000 $203,000 $173,000 Assume a Company has an opportunity to buy a machine for $910,000. Anticipated cash flows for Year 1 to Year 6 is listed below. In addition, the company can refurbish the equipment at the end of 6 years. Refurbishing the equipment will cost $102,000 and will generate $274,000 of cash flows in year 7. Finally, the equipment would have a residual value of $80,000 at the end of year 7. Assume the Company has a 16% required rate of return. What is the NPV of the project? A. $14,080. B. $55,900. C. $97,720. D. $924,080. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6. Net Cash Inflow/(outflow) $264,000 $252,000 $222,000 $210,000 $203,000 $173,000

Answer rating: 100% (QA)

Based on the information provided in the image the net present value NPV of the project is 97720 Her... View the full answer