How to calculate the net present value


Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $24,000 and will generate after-tax cash inflows of $5,000 per year for 8 years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate whether to accept or rejected the machine, and (3) explain your decision

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Accounting Basics: How to calculate the net present value
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