Please, I need it with 40 minutes if you can post it. thanks
A machine costs $96,000 to purchase and generates an annual revenue of $39,000 with a $6,600 annual cost. Assume that your time value of money (MARR) is 12% annually, and this machine lasts 10 years. What is the Net Present Value of this machine? Your answer may be negative."
Net Present Value = Present Value of Cash inflows - Present value of cash outflows
= (39,000-6,600)*PVAF(12%, 10 years) - 96,000
= 32,400*5.6502 - 96,000
= $87,066.48
Hence, NPV = $87,066.48
Please, I need it with 40 minutes if you can post it. thanks A machine costs...