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Herky Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging in each of the next
Herky Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging in each of the next 5 years, producing the series of cash inflows shown in the following table: B. The initial investment is estimated at $2.03 million. Using a 6% discount rate, determine the net present value (NPV) of the machine given its expected operating cash inflows. Based on the project's NPV, should Herky make this investment? The net present value (NPV) of the new wrapping machine is $ (Round to the nearest cent.) Data table (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Year 1 2 3 Cash inflow $649,600 $609,000 $487,200 $568,400 $324,800 4 5
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