Question: EZ Corporation is considering purchasing an automated sorting machine for their warehouse. The machine would cost $2,000,000 and has an estimated useful life of 10

EZ Corporation is considering purchasing an automated sorting machine for their warehouse. The machine would cost $2,000,000 and has an estimated useful life of 10 years. Management estimates that the new machine will provide net annual cash inflows of 655,000 and net annual cash outflows of $320,000. The company is expecting a salvage value of $50.000 at the end of the machine's useful life, and a maintenance expense of $250,000 at the end of year 4. Assume a discount rate of 9% Required: (8 Marks) ) Calculate the payback period in number of years B) Calculate the Net Present Value (NPV) B) Should the company move forward with the project and why
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