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Please calculate the net present value of each project assuming a 6 % discount rate. Aliara Corporation is considering purchasing one of two new machines.
Please calculate the net present value of each project assuming a 6 % discount rate.
Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: ne AMach,ne B Investment Estimated life Estimated annual cash inflows Estimated annual cash outflows $108,000 10 years $26,700 $5,900 $155,400 10 years $39,700 $g,goo Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project 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 O decimal places, e.g. 125.) Net Present Val Machine A Machine B Which project should the company choose?
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