EXPLAIN CASH FLOW CALCULATION

ESTIMATE OF INCREMENTAL CASH FLOW

Old Spinning Machine $$964$ $$1,367$ $$1,403$ $$1,440$ $$1,478$ $$1,517$ $$1,378$ $$1,419$ $$1,462$ $$1,506$ $$2,824$

New Zinser $$7,852$ $$3,348$ $$3,440$ $$3,535$ $$3,633$ $$3,733$ $$3,837$ $$3,944$ $$4,054$ $$4,168$ $$5,106$

Incremental CF $($case $2-$ case $1)$ $$6,889$ $$1,981$ $$2,037$ $$2,095$ $$2,155$ $$2,216$ $$2,459$ $$2,525$ $$2,592$ $$2,661$ $$2,282$

NPV $$6,918\mathrm{.}02$

IRR $29\%$