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Warm-Up 10-2 (book/static) Question Help Herry Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging
Warm-Up 10-2 (book/static) Question Help Herry Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging in each of the next 5 years, producing the series of cash inflows shown in the following table. The initial investment is estimated at $1.25 million. Using a 6% discountate determine the net present value (NPV) of the machine given its expected operating cash inflows. Based on the project's NPV should Herky make this investment? Thenat present value (NPV) of the new wrapping machine is Round to the newest cent) 0 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year Cash inflow 1 $400,000 2 $375,000 3 $300,000 4 $350,000 5 $200,000 Print Done
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