Question
Lofting Snodbury is considering investing in a new boring machine. It costs $416,000 and is expected to produce the following cash flows: Year 1 2
Lofting Snodbury is considering investing in a new boring machine. It costs $416,000 and is expected to produce the following cash flows:
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash flow ($000s) | 67 | 74 | 109 | 114 | 102 | 109 | 109 | 114 | 85 | 67 |
If the cost of capital is 13%, 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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The Handbook Of Equity Market Anomalies
Authors: Leonard Zacks
1st Edition
0470905905, 978-0470905906
