TestBank 3 - A

Rayburn Industries is evaluating the investment of $144,900 in a new packing machine that should provide annual cash operating inflows of $31,060 for 6 years. At the end of 6 years, the packing machine will be sold for $4,850. Rayburns required rate of return is 8%.

(a) What is the machine's net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to o decimal places e.g. 58,971.) Net present value