Projected investment and cash flow amounts

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Quick Fix Company is considering buying a Crypto Currency Machine to print crypto currency with the following projected investment and cash flow amounts. Machine has no salvage value.

Year Cash Flow Amounts

0 ($11,800) = Initial Investment

1 $22,500

2 $21,000

3 $12,000

4 $8,500

5 ($14,800)

6. Compute the NPV for the Crypto Currency Project if the appropriate cost of capital is 6%.

[Excel Formula = NPV] [Hint: NPV of Cash Flows – Initial Investment = Net Present Value]

A. $11,114.62

B. ($ 685.68)

C. $ 685.68

D. ($ 11,800.00)

7. Should Crypto Currency Project be accepted or rejected?

A. Accepted

B. Rejected

Reference no: EM131926909

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