Q

Cullumber Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $13038 for 5 years. The cost of the machine is $44838 and it can be sold at the end of its 5 year useful life for $7208, Cullumber's required rate of return is 10%. Periods Interest rate Factor Type of cash flow PV of $1 5 10% 0.6209 FV of $1 5 10% 1.6105 5 10% 3.790B PV ordinary annuity FV ordinary annuity PV annuity due 5 10% 6.1051 5 10% 4.1699 What is the machine's net present value? (round to the nearest dollar) 59061 $13149 $17513 ($111)