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What is the net present value of the project

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Question - A company wishes to acquire a new machine at a cost of $92,000. Its goal is to reduce its expenses and increase its net cash flow.

Specifically, the net cash flows for the next 4 months would be zero, while those for the end of months 5-12 would be $2,000. The next net cash flows would be $25,000 in 2 years, then $26,000 in 3 years, and $27,000 in 4 years. In 4 years, she also plans to resell the machine and get $46,000.

Required - What is the net present value of the project, if the discount rate is 1% per month?

Reference no: EM133091528

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