Question
Windsor Corporation is considering buying a brand new machine and has gathered the following data: Investment $104.500 Estimated life 6 years Estimated annual cash inflows
Windsor Corporation is considering buying a brand new machine and has gathered the following data: Investment $104.500 Estimated life 6 years Estimated annual cash inflows $29,900 Estimated annual cash outflows $10,400 Salvage value for the machine is estimated to be zero. Click here to view the factor table. Calculate the net present value of the machine assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net Present Value $ Should the company buy the machine based on your results?
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