Solution-Estimating the net present value

Estimating the net present value

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Net Present Value:

The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42000. It is expected that the new piece of equipment will lead to cash flows of $17000, $29000, and $40000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.

Reference no: EM132352329

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Estimating the net present value

Reference no: EM132352329

Reference no: EM132352329

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