Question: QUESTION 11 Given the information below for a copier, calculate the net present value of the investment (calculate all the six cells that have an
QUESTION 11 Given the information below for a copier, calculate the net present value of the investment (calculate all the six cells that have an X and show your calculation steps). Given your result, should you recommend your organization to purchase the copier? 1. Please fill in all the 6 blanks below (note: you can put the calculation steps in each of 6 blank areas. In this way, even if your final calculation is wrong, if your steps are correct, you can still get some partial points) 2. Using your answers to recommend your organization: should they purchase the copier? Explain your recommendation. Net present value analysis-Copier Required rate of ren Year Cost of machine Overhaul Cash inflows Cash outflows Salvage value Net present value 0.15 Now (50,000) 1 2 3 4 (4,000) 20,000 20,000 20,000 20,000 (4,000) (4,000) (4,000) (4,000) 3,500 Present Value
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