A manufacturer is considering purchasing equipment that will have the following financial effects: If the money is worth 6% should he invest in the equipment?
Homework Answers
NPV=-4400+(880-660)/1.06+(1980-660)/1.06^2+(2420-440)/1.06^3+(1760-220)/1.06^4
=-135.38711
As NPV is negative, do not invest in the equipment
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