Question: Benjamin Box Corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost 709,100. It would have an estimated life

Benjamin Box Corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost 709,100.

It would have an estimated life of 6 years and no salvage value.

The company estimates that annual cash inflows would increase by 301,100 and that annual cash outflows would increase by 138,200.

Management believes a discount factor of 9%.

(a) Calculate the present value on this project.

(b) Calculate the net present value on this project, and discuss whether it should be accepted.

show all your calculation.

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