Compute the total present value of all expected future cash

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Question - A Company is considering investing in the purchase of a Machine which is expected to be used in manufacturing. The Company expects to generate the following cash flows at the end of each year of the Machines expected economic life of 5 years. Year (end) 1 2 3 4 5 Net Cash Flows (k.sh.) 50,000 40,000 30,000 20,000 20,000 The Company requires a minimum rate of return of 18% p.a. Compute the total present value of all expected future cash flows.

Reference no: EM132984732

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