The Lees are considering adding a new piece of equipment that will speed up the bobblehead building process. The cost of the equipment is $42,000. The new equipment is expected to generate cash flows of $17,000, $29,000, and $40,000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the investment in the new equipment we need to discount th... View the full answer