The Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bott money. The net cost of this machine is $69,000. The annual cash flows have the following projections. Use Appendix B ar D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 12345 5 Cash Flow $ 29,000 29,000 29,000 34,000 20,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value

The Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bott money. The net cost of this machine is $69,000. The annual cash flows have the following projections. Use Appendix B ar D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 12345 5 Cash Flow $ 29,000 29,000 29,000 34,000 20,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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