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do not use excell or similar program. calculate by hand. thank you. Consider an investment in a lathe machine in your manufacturing company which will
do not use excell or similar program. calculate by hand. thank you.
Consider an investment in a lathe machine in your manufacturing company which will cost $150,000 and has an annual maintenance expenditure of $5,000. Assume the life of the lathe machine as 20 years and annual interest rate of 5% to answer the below two questions: a. What is the present value of the expenditures you will make in buying the lathe machine and its maintenance expenditures for the next 20 years? b. What is the net present value (NPV) of the investment if you make annual revenue of $9,000 by employing this lathe machine in your company assume that there is no other expenditures involved except that of maintenance to evaluate the NPV)Step by Step Solution
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