Question
Lofting Snodbury is considering investing in a new boring machine. It costs $420,000 and is expected to produce the following cash flows: Year 1 2
Lofting Snodbury is considering investing in a new boring machine. It costs $420,000 and is expected to produce the following cash flows:
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash flow ($000s) | 63 | 70 | 101 | 106 | 98 | 105 | 105 | 106 | 81 | 63 |
If the cost of capital is 9%, what is the machine's NPV?
Note: Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
