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What the machine net present value is

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Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $215,000. In addition, Austin estimates that the new machine will increase the company's annual net cash inflows by $33,000. The machine will have a 12-year useful life and no salvage value.

Problem 1: Using a discount rate of 10%, the machine's net present value is:

Select one:

a. $27,837
b. None of the above
c. $0
d. $9,852

Reference no: EM132691845

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