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Your company is preparing to launch a new product over the next 14 years. The equipment to make this new product will have an initial
Your company is preparing to launch a new product over the next 14 years. | ||||||||
The equipment to make this new product will have an initial cost of $135000 to the company. | ||||||||
At the end of the project, you believe you can get $23000 for the equipment as salvage. | ||||||||
Supplies will cost $1900 the first year and go up by $750 each year. | ||||||||
Maintenance costs start at $1350 the first year and will increase by 2.6% each year | ||||||||
The company expects to make $8500 the first year and this will increase by 2.1% each year. | ||||||||
Create the Cash flow table showing these costs and profits and the net cash flow. | ||||||||
If the interest rate is 4.0%, what will be the NPV of the project? |
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