Discuss what is the machines net present value

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1. Rayburn Industries is evaluating the investment of $129,000 in a new packing machine that should provide annual cash operating inflows of $27,620 for 6 years. At the end of 6 years, the packing machine will be sold for $5,030. Rayburn's required rate of return is 8%. Collapse question part (a) What is the machine's net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.) Based on net present value, should Rayburn purchase the new packing machine?

2. Please write the solutions in detail and give answers to every part in these free response questions. Thank you in advance! (Questions are attached as a photo)

3. Also see the advanced question and answer the question attached and solve

Reference no: EM131757674

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