Question
A company is considering investing in a project that costs $41283 for two years, payments to be made upfront. The project will produce annual operating
A company is considering investing in a project that costs $41283 for two years, payments to be made upfront. The project will produce annual operating cash inflows of $25,000 each year for the six years, with the first cash inflow commences in year three. A shutdown cost of $10,000 is expected one year after the last operating cash inflow has been received. The company uses a discount rate of 10%. What is the net present value of the machine?
Please provide your answer to the nearest cent, without the unit of dollar sign (e.g., 1001.15 or -1001.15 if negative).
Answer:
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