Compute the net present value of the project assuming a 10

Reference no: EM13583787

A company is considering a proposal to invest $30,000 in a project that would provide the following net cash flows:

Year 1	$6,500
Year 2	$10,700
Year 3	$15,000
Year 4	$12,800

1) What is the project's payback period?
2) Compute the net present value of the project assuming a 10% discount rate with the following factors: PV factors for $1(yr 1: 0.9091; yr 2: 0.8264; yr 3:0 .7513; yr 4: 0.6830)
3) Should the company invest in the machine? Explain.

Reference no: EM13583787

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Compute the net present value of the project assuming a 10

Reference no: EM13583787

Reference no: EM13583787

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