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Cullumber Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are
Cullumber Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year Cash Flow -$3,534,400 933,710 1 2 877,200 3 1,056,100 4 1,341,460 1,539,500 5 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Should management go ahead with the project? the project The firm should
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