Florence is contemplating the purchase of a soda machine, which will be used to sell soft drinks to customers for $.75 each. The following estimates are available:
Initial outlay $3,500
Annual cash inflow $1,000
Cost of capital 10%
Estimated life 5 yrs
Estimated residual value 0
Determine the net present value of the soda machine.© BrainMass Inc. brainmass.com June 3, 2020, 10:19 pm ad1c9bdddf
The answer contains computation of Net present Value of the machine.