Problem:
Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,102,895. have a life of five years, and would produce the cash flows shown in the following table
- Year Cash Flow
- 1 $543,963
- 2 -299,171
- 3 798,022
- 4 667,016
- 5 669,670
Required:
Question: What is the NPV if the discount rate is 15.29 percent?