Cullumber Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project?

Year		Cash Flow
0		-$3,505,700
1		831,310
2		1,013,300
3		1,233,700
4		1,283,660
5		1,512,800

What is the NPV of this project?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we will discount each cash flow to the present ... View the full answer