After the five years the machine will have no salvage value


You are considering buying a machine that will cost you $11,100. There will be a maintenance cost of $810 at the beginning of each year, and the machine will generate cash flows of $4,550 over the next five years. After the five years, the machine will have no salvage value. What is the NPV of this machine if the cost of capital is 12 percent?

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Finance Basics: After the five years the machine will have no salvage value
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