Question
Flounder Company is proposing to spend $230,000 to purchase a machine that will provide annual cash flows of $44,000 over a 10-year period. The appropriate
Flounder Company is proposing to spend $230,000 to purchase a machine that will provide annual cash flows of $44,000 over a 10-year period. The appropriate present value factor for 10 periods is 5.65022. Click here to view PV tables. Compute the proposed investment's net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 5,275.)
Net present value | $ |
Indicate whether the investment should be made by Flounder Company. Investment select an option (should or should not) be made by Flounder Company.
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