## [answered] ABC Company is considering investing in a new piece of mach

ABC Company is considering investing in a new piece of machinery with a cost of \$-10565. ?The asset has a three year life. ?The annual cash flows are estimated at:

Year 1 ?\$2088

Year 2 \$3381

Year 3 \$6015

The discount rate is 8%

What is NPV? ?If NPV is negative, put a minus sign in front of the number. ?Round to the nearest whole number.

NPV Calculation

Year

Year 0

Year 1

Year 2

Year 3

NPV Cash Flow

NPV

-10,565

-10,565

2,088

1,933

3,381

2,899

6,015

4,775

-958 NPV Formula Cash Flow *(1+r)^-t

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This question was answered on: Sep 18, 2020

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