Find what is net present value of selecting new machine

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Reference no: EM132528455

The Coleman Co. produces canned tomatoes and it is considering the purchase of a new machine that would increase the speed of the canning process and save money. The cost of this machine is $40,000. The annual cash flows are projected to be the following:

Year            Cash Flow

1                   $5,000

2                 $10,000

3                 $25,000

4                 $15,000

5                 $20,000

Question 1: What is the net present value of selecting the new machine, assuming an interest rate of 8%?

A. $17,686

B. $97,686

C. $57,686

D. $7,868

Reference no: EM132528455

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