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4) The BKB Company is considering purchasing a machine for their manufacturing assembly operations. The machine would cost $150,000 and have no salvage value.

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4) The BKB Company is considering purchasing a machine for their manufacturing assembly operations. The machine would cost $150,000 and have no salvage value. It would allow them to assemble their product with one less direct labor person. The salary of one assembler for the next three years would be $55,000, $57,500 and $60,000. If they use a discount rate of 6.00% what is the NPV and should they accept the project? Year 0 (today) Year 1 Cash Flow Factor SET PV 00.12 tooft Jelicpod O sitial 0002512 200 boxil ni noirsuber A Year 2 Year 3 NPV nemqi Accept: Yes/No ruite 000252 Jamiups to su If they use a discount rate of 8.00% what is the NPV and would the answer change? 1 sd) nimalo Year 0 (today) Year 1 Year 2 Year 3 PV NPV Accept: Yes / No 252.PH A

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