Discuss what is the machine''s net present value

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Rayburn Industries is evaluating the investment of $143,100 in a new packing machine that should provide annual cash operating inflows of $30,660 for 6 years. At the end of 6 years, the packing machine will be sold for $5,200. Rayburn's required rate of return is 8%. Warning

(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.)

Reference no: EM131804149

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