Should the firm purchase the machine

Reference no: EM13282783

The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In Excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should the firm purchase the machine?

End of Year	Investment (Year 0_ and Cost	Revenue	Net Revenue	Present Value Coefficient 1/(1+0.5)n	Present Value of Net Revenue
0	1000
1	200	600
2	300	800
3	300	800
4	400	800
4		200*

Reference no: EM13282783

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