Question
Cullumber Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,904,338, have
Cullumber Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,904,338, have a life of five years, and would produce the cash flows shown in the following table.
| Year | Cash Flow |
| 1 | $497,372 |
| 2 | -227,300 |
| 3 | 936,920 |
| 4 | 829,420 |
| 5 | 672,480 |
What is the NPV if the discount rate is 13 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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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
