Question
Only question 3 please Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay
Only question 3 please
Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,133,333. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows:
Year Cash Revenues Cash Expenses
1 $2,960,000 $2,320,000
2 2,960,000 2,320,000
3 2,960,000 2,320,000
4 2,960,000 2,320,000
5 2,960,000 2,320,000
how to Compute the project's net present value, assuming a required rate of return of 10 percent.
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