What is the machine’s net present value?, Homework Question Help

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Question Description

Rayburn Industries is evaluating the investment of $147,100 in a new packing machine that should provide annual cash operating inflows of $31,480 for 6 years. At the end of 6 years, the packing machine will be sold for $5,270. Rayburn’s required rate of return is 8%.

What is the machine’s net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.)

Tutor Answer

FinAccGuru
School: Cornell University

Here is the answer. Thanks

Particulars

Net Cash Flows (NCF) Calculation
Year 1
Year 2
Year 3

Year 4

Year 5

Year 6

Operating Cash Flows

31,...

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Anonymous
awesome work thanks

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