1. A machine costs $800,000 to purchase. It will produce a cash inflow of $200,000 in...
1. A machine costs $800,000 to purchase. It will produce a cash inflow of $200,000 in year 1, $400,000 in year 2, and $600,000 in year 3. The required return is 12 percent. Calculate the NPV
Homework Answers
On your calculator, punch these figures
CF0 = (800,000)
C01 = 200,000
C02 = 400,000
C03 = 600,000
I = 12
CPT NPV = 124,517.1
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