Question
Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,226,907. have
Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,226,907. have a life of five years, and would produce the cash flows shown in the following table.
| Year | Cash Flow |
|---|---|
| 1 | $606,847 |
| 2 | -276,364 |
| 3 | 906,196 |
| 4 | 863,891 |
| 5 | 576,385 |
What is the NPV if the discount rate is 13.10 percent?
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
