IE Exercise $11-8($Static$)$: Net present value and unequal cash flows LO P$3$

A company is considering a $$150,000$ investment in machinery with the following net cash flows. The company requires a $10\%$ return on its investments.

Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Net cash flows $ $10,000$ $ $25,000$ $ $50,000$ $ $37,500$ $ $100,000$

$($a$)$ Compute the net present value of this investment.

$($b$)$ Should the machinery be purchased?A company is considering a $$150,000$ investment in machinery with the following net cash flows. The

company requires a $10\%$ return on its investments.

Verify the value of cell C$18$ using the NPV function

$($b$)$ Should the machinery be purchased?