Compute the net present value of the machine

Reference no: EM131912998

Problem

Mayberry Textiles Inc. is considering the purchase of a new machine which has an initial cost of $400,000. Annual operating cash inflows are expected to be $100,000 each year for eight years. No salvage value is expected at the end of the asset's life. Mayberry's cost of capital is 14 percent. Compute the net present value of the machine.

Reference no: EM131912998

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