Question: Data for a machine is given below. What is the NPW for the project cash flow? Machine A Initial cost $325,000 Life in years 3

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

Machine A
Initial cost $325,000
Life in years 3
Life of project 6
Salvage as % of initial cost after life 15%
Benefits per year $225,000
Costs per year $62,000
Inflation (applied to all costs) 4%
MARR 12%
Benefits increase yearly by 6%

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