The Holly Tree Company plans to purchase a new machine that will increase its manufacturing speed and save the company money. The cost of this machine is $66,000. The annual cash flow projections are below. If the cost of capital is 10 percent, what is the net present value?
The Holly Tree Company plans to purchase a new machine that will increase its manufacturing speed and save the company money. The cost of this machine is $66,000. The annual cash flow projections are below. If the cost of capital is 10 percent, what is the
Year Cash Flow
1....................................... $21,000
2....................................... 29,000
3....................................... 36,000
4....................................... 16,000
5....................................... 8,000
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