A company is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,322, $863,275, $937,250, $1,018,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment?© BrainMass Inc. brainmass.com October 10, 2019, 7:15 am ad1c9bdddf
Initial cash flow=CF0=-$4,133,250
Cash Flow at the end of year 1=CF1=817,322
Cash Flow at the end of year ...
The solution depicts the steps to calculate the NPV in the given case.