2.A company is evaluating the feasibility of investing in machinery to manufacture an automotive component. It would need to make an investment of $550,000 today, after which, it would have to spend $7,500 every year starting one year from now, for twelve years. At the end of the period, the machine would have a salvage value of $13,000. The company confirmed that it can produce and sell 8,450 components every year for twelve years and the net return would be $12.50 per component. The company's required rate of return is 6.00%.
a. What is the Net Present Value (NPV) of this investment option?
Kindly keep all the decimals for all the procedures, DO NOT ROUND
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