Question: solve in excel 4. Baird Bros. Construction is considering the purchase of a machine at a cost of $250,000. The machine is expected to generate
solve in excel
4. Baird Bros. Construction is considering the purchase of a machine at a cost of $250,000. The machine is expected to generate cash flows of $40,000 per year for 10 years and can be sold at the end of 10 years for $10,000. Interest is at 9%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. Required: a. What is the Net Present Value of the cash flows? b. Should Baird Bros. Construction purchase the machine? Explain
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