What is the net present value of the investment

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Question - The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $350,000. The investment is expected to generate $225,000 in annual cash flows for a period of four years. The required rate of return is 10%. The new machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment closest to? Would the company want to purchase the new machine? Income taxes are not considered.

A) $363,025; yes

B) $22,500; no

C) $350,000; yes

D) $375,650; no

Reference no: EM132938785

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