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

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account_balance_wallet \$5

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.)

FinAccGuru
School: Cornell University

Particulars

Net Cash Flows (NCF) Calculation
Year 1
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Year 6

Operating Cash Flows

31,...

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Anonymous
awesome work thanks

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