LePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $360,000 and will generate after-tax cash inflows of $62,650 per
LePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $360,000 and will generate after-tax cash inflows of $62,650 per year for 8 years. If the cost of capital is 8% calculate the net present value (NPV) and indicate whether to accept or reject the machine.
What is the NPV of the project is?
Should this project be accepted?
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Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
