Problem 1. NPV

Florida Company is considering acquiring a machine that costs $25,000. It is estimated that the machine will generate additional revenues of $15,000 per year for 5 years. Florida Company requires a minimum return of 12% on all investments.

Compute the machines net present value. Should Florida Company acquire the machine? Why or why not?

Where would Florida Company get the data used to compute the machines net present value? The $25,000? The $15,000? The 5-years? The 12%? Put yourself in the shoes of the Florida Company employee charged with computing the machines net present value. There is no textbook to give you the data. What do you do?

Once youve compiled the data noted above and computed the net present value, you are charged with reporting your finding to the Florida Companys board of directors. The board members are not necessarily accounting and finance aficionados. How do you explain your findings so they understand your recommendation?

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT, USE "ORIGINAL CONTENT" NOT USED BEFORE ON CHEGG PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES. THANKS.