Question: Purple Haze Machine Shop is considering a four - year project to improve its production efficiency. Buying a new machine press for $ 5 2
Purple Haze Machine Shop is considering a fouryear project to improve its production efficiency. Buying a new machine press for $ is estimated to result in some amount of annual pretax cost savings. The press will have an aftertax salvage value at the end of the project of $ The OCFs of the project during the years are $ $ $ and $ respectively. The press also requires an initial investment in spare parts inventory of $ along with an additional $ in inventory for each succeeding year of the project. The shop's discount rate is percent. What is the NPV for this project?
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