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You are tasked with evaluating the purchase of a super computer for the control room. The total initial investment (purchase, modification, and investment in net
You are tasked with evaluating the purchase of a super computer for the control room. The total initial investment (purchase, modification, and investment in net operating working capital) will be $600,000. The machine will result in operating cash flow of $240,000 per year for three years. When the machine is sold at time period three, the net sale price will be $180,000. The firm will also recover the investment in net working capital of $45,952. What is the net present value of the investment if the required return is 12%
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