Net present value of the proposed investment

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Reference no: EM13788051

(Ignore income taxes in this problem.) Frick Road Paving Corporation is considering an investment in a curb-forming machine. The machine will cost $180,000, will last 10 years, and will have a $30,000 salvage value at the end of 10 years. The machine is expected to generate net cash inflows of $40,000 per year in each of the 10 years. Frick's discount rate is 10%. The net present value of the proposed investment is closest to:

A. $250,000

B. $65,800

C. $245,800

D. $77,380

Reference no: EM13788051

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