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.)

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School: Cornell University

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Net Cash Flows (NCF) Calculation
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Operating Cash Flows


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