Question: Data for a machine is given below. What is the NPW for the project cash flow? Machine B Initial cost $425,000 Life in years 3

Data for a machine is given below. What is the NPW for the project cash flow?

Machine B
Initial cost $425,000
Life in years 3
Life of project 6
Salvage as % of initial cost after life 12%
Benefits per year $295,000
Costs per year $83,000
Inflation (applied to all costs) 6%
MARR 14%
Benefits increase yearly by 8%

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