Dane cosmetics is evaluating a new fragrance-mixing machine


Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $56,000 and will generate after-tax cash inflows of $12,000 per year for 8 years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate wheter to accept or reject the machine, and (3) explain your decision. What do you notice about NPV as Cost of Capital changes?

Please show the work using the formula: NPV = CF(PVIFAr,t) - CFo.

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Financial Management: Dane cosmetics is evaluating a new fragrance-mixing machine
Reference No:- TGS01284115

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