Net present value : Net present value can be referred to as a discounted cash flow technique which is applied to weight the items of trade-off between investment and future returns. It is the sum of the present value of all the cash inflows less the sum off present value of all cash outflow . Hence, it is the sum of all the discounted value of cash flows of the project. The internal rate of return if the company buys the machine.

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Chapter 24, Problem 15QS

To determine

Net present value:

Net present value can be referred to as a discounted cash flow technique which is applied to weight the items of trade-off between investment and future returns. It is the sum of the present value of all the cash inflows less the sum off present value of all cash outflow. Hence, it is the sum of all the discounted value of cash flows of the project.

The internal rate of return if the company buys the machine.

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