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Year Amount Year 1 $ 30,000 Year 2 25,000 Year 3 20,000 15,000 Year 4 $ 90,000 Total Burlington Cola is considering the purchase of
Year Amount Year 1 $ 30,000 Year 2 25,000 Year 3 20,000 15,000 Year 4 $ 90,000 Total Burlington Cola is considering the purchase of a special-purpose bottling machine for $70,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs: (Click the icon to view the savings in cash operating costs.) Burlington Cola uses a required rate of return of 20% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Present Value of $1 table Read the requirements. 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is
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