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Blossom Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inows of $12546 for 5 years. The
Blossom Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inows of $12546 for 5 years. The cost ofthe machine is $43146 and it can be sold at the end of its 5year useful life for $6936. Blossom's required rate of return is 10%. Type of cash ow Periods Interest rate Factor PV of $1 5 10% 0.6209 FVof$1 5 10% 1.6105 PV ordinary annuity 5 10% 3.7908 FVordinaryannuity 5 10% 6.1051 PV annuity due 5 10% 4.1699 What is the machine's net present value? {round to the nearest dollar]I 0 $8720 0 $12652 O $16853 O ($106]I
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