QUESTION $1$

Store managers believe that they need another coffee machine. They give you the following numbers. Your task is to see if the numbers translate into a positive net present value. Consider the addition of value to the company a positive number. Use the excel function $"$npv $+$ cash flow at time zero" for your calculations. If this number is positive, then the store managers are correct and you should authorize the purchase of the machine. Note that you will be adding a negative number at time zero. This is because it is flowing out of your accounts. Its the purchase of the machine.