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Wexler Company Present Value of Project

The Wexler Company is considering the purchase of a new machine costing $250,000. This machine is estimated to cost $5,000 per year in operating expenses but it will allow the company to earn an additional $100,000 per year in revenues and at the end of 3 years the machine will have a salvage value of $40,000. If the required rate of return is 12% what is the net present value of this project? (Round the answer to the nearest whole dollar)

Solution Summary

This solution helps calculate the net present value of a project.