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What is the npv

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Reference no: EM133150143

Question - The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $66,000. The annual cash flows have the following projections.

Year

Cash Flow

1

$28,000

2

28,000

3

28,000

4

33,000

5

11,000

a. If the cost of capital is 12 percent, what is the NPV?

b. What is the IRR?

c. Should the project be accepted?

Reference no: EM133150143

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