Firm ABC wants to purchase a new machine for a two-year project. The machine costs $100,000 and generates positive after-tax cash flows of $65,000 at the end of each of the next two years. The machine has an expected life of two years and has no salvage value. 

Assume that the cost of capital is 9%. The net present value (NPV) of the machine is closest to?

Answer rating: 100% (QA)

To calculate the net present value NPV of the machine we need to discount the future cash flows to t... View the full answer