Question
Blossom Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,566,338, have
Blossom Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,566,338, have a life of five years, and would produce the cash flows shown in the following table. Year Cash Flow 1 $515,372 2 -277,300 3 813,920 4 812,420 5 627,480 What is the NPV if the discount rate is 15 percent? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)
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