Compute the net present value of the machine

timer Asked: Oct 27th, 2015

Question description

ily Company is planning to buy a machine at a cost of $240,000. The machine will generate net cash inflows at the end of each year for the next 5 years of $70,000. At the end of 5 years, the machine will also have a salvage value of $40,000. Lily’s discount rate is 12%. Compute thenet present value of the machine

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