The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money. The net cost of the new machine is $66,000. The annual cash flows have the following projections:
If the cost of capital is 10%, find the following:
a. The PVB
b. The NPV
The expert examines OHM Depot Co equipment purchases. The PVB, NPV, payback and profitability index are determined.