on Chapter $10)$

Question $1,$ Warm$-$Up $10-2($similar to$)$

Points: $0$ of $1$

Herky Foods is evaluating a new wrapping machine. With the machine, Herky will save money on packaging in each of the next $5$ years, producing the series of cash inflows shown in the following table: $q,$ The initial investment is $$1\mathrm{.}65$ million. Using a $4\%$ discount rate, determine the net present value $($NPV$)$ of the machine given its expected cash inflows. Based on the project's NPV$,$ should Herky make this investment?

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[$Year$,$Cash inflow$],[1,$$$528,000$