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Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,597,338, 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 $1,597,338, have a life of five years, and would produce the cash flows shown in the following table.
Year | Cash Flow |
1 | $571,372 |
2 | -259,300 |
3 | 633,920 |
4 | 809,420 |
5 | 568,480 |
What is the NPV if the discount rate is 17 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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