Compute the net present value of the project

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Reference no: EM13256448

The Wiley Company is going to buy a machine for $120,000. The machine will produce a product that generates an annual cash inflowof $30,000 per year. The product will require $20,000 ofworking capital. The product will have an economic life of 8years. The machine will have a residual value at the end of the 8 years of $8,000. The company has a 14% cost of capital.

Compute the net present value of the project
Compute the payback period of the project

Reference no: EM13256448

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