Question
Further investigation reveals that there would be a sales increase of $7,200 annually as a result of an increase in quality from the customer's perspective
Further investigation reveals that there would be a sales increase of $7,200 annually as a result of an increase in quality from the customer's perspective and a cost reduction of $3,000 annually as a result of lower warranty claims. Considering these additional facts, calculate the Net Present Value of the machine. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.)
Net Present Value$
Should the company buy the machine?
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