Ivanhoe Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses...


Ivanhoe Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project?












































Year

Cash Flow

0

-$3,046,900

1

803,710

2

889,200

3

1,247,600

4

1,285,160

5

1,576,500




What is the NPV of this project?


- NPV $?


Jun 07, 2022
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