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Maersk Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for $30,000 and $8,000 (both machines are
Maersk Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for $30,000 and $8,000 (both machines are required). The total residual value at the end of the project is$1,500. The project will generate cash inflows of $11,000 per year over its 8 minusyear life. If Maersk requires a 6% return, what is the net present value (NPV) of this project? (The present value of annuity for this scenario is 6.210. The present value for this scenario is 0.627.)
A.
$30,310
B.
$31,250.50
C.
$2,456
D.
$8,332
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