Explore BrainMass

Calculate NPV of $75,000 investment

What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%

Textbook info: Operations Management, 8th Edition
Authors: Jay Heizer and Barry Render

Solution Preview

This project will have an immediate (t=0) cash outflow of $75,000 (which might include machinery, and employee training costs). Cash inflows are expected ...