Question $9$

Top Growth Farms, a farming cooperative, is considering purchasing a tractor for $$564,000.$ The machine

has a $10-$year life with no salvage value. Top Growth uses straight$-$line depreciation. The required rate of

return is $9\%.$

Top Growth estimates that the tractor will be used five times a week with the average charge to the

individual farmers of $$400.$ Fuel is $$50$ for each use of the tractor.

Using the annual cash flow calculated in an earlier question, calculate NPV$.$ Use excel but DO NOT use

the Excel NPV function. Attach a screenshot of your calculations to this question.

$-82676$

$20007$

$59506$

$83574$