Question
Sunland Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,942,338, have
Sunland Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,942,338, have a life of five years, and would produce the cash flows shown in the following table.
| Year | Cash Flow |
| 1 | $521,372 |
| 2 | -246,300 |
| 3 | 773,920 |
| 4 | 714,420 |
| 5 | 653,480 |
What is the NPV if the discount rate is 13 percent?
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Public Finance
Authors: Charles Francis Bastable
1st Edition
1375520083, 978-1375520089
