Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially...

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Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manu

business accounting

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Answer 1

Answer #1

Net Annual Cash Inflows = $1600000 - $1000000 = $600000

NPV = PV of Cash Flows - Investment
PV annuity factor @12% for 5 years = 3.6048
NPV = $600000 x 3.6048 - $700000 = $1462880

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Answer 2

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