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the Herky Foods is evaluating a new wrapping machine. With the machine, Herky will save money on packaging in each of the next 5
the Herky Foods is evaluating a new wrapping machine. With the machine, Herky will save money on packaging in each of the next 5 years, producing the series of cash inflows shown in following table: The initial investment is $1.13 million Using a Becount rate, determine the net present value (NPV) of the machine given its expected cash inflows. Based on the projects NPV, should Herky make this investment? The net present value (NPV) of the new wrapping machine is $ (Round to the nearest cent.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year Cash inflow 1 2 3 4 5 Print $361,000 $339,000 $271,200 $316,400 $180,800 Done X
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The formula for NPV is as follows NPVt1nCFt1rt Initial Investment Here CFt is th...Get Instant Access to Expert-Tailored Solutions
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