Marinis Corporation is considering buying a brand new machine and has gathered the following data: Investment$105,900Estimated life5
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Question:
Marinis Corporation is considering buying a brand new machine and has gathered the following data:
Investment$105,900Estimated life5 yearsEstimated annual cash inflows$30,100Estimated annual cash outflows$10,200
Salvage value for the machine is estimated to be zero.
Click here to view PV table.
(a)
Calculate the net present value of the machine assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.)
Net Present Value$
Should the company buy the machine based on your results?
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