Copr. Goedl Gypsy Weaving Inc. is considering a new weaving machine. The Dura Weaver model costs $90,000. Data for the new weaving machine is provided below. Annual revenue Annual cash operating expenses Annual depreciation expense Salvage value at the end of useful life Useful life Required rate of return on investments $29,000 $11,000 $3,250 $3,000 8 years 12% The net present value of cash inflows from the new weaving machine is (use the present value tables included in the practice video problem handout to solve this question) $89,424 $18,000 $144,072 $7,272

Copr. Goed Gypsy Weaving Inc. is considering a new weaving machine. The Dura Weaver model costs $90,000. Data for the new weaving machine is provided below. $29,000 Annual revenue Annual cash operating expenses $11,000 Annual depreciation expense $3,250 Salvage value at the end of useful life $3,000 Useful life 8 years Required rate of return on investments 12% The net present value of cash inflows from the new weaving machine is (use the present value tables included in the practice video problem handout to solve this question) $89,424 $18,000 $144,072 $7,272