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 $2,187,932. have a life of five years, and would produce the cash flows shown in the following table.
| Year | Cash Flow |
| 1 |
$448,536 |
| 2 |
-252,003 |
| 3 |
643,094 |
| 4 |
1,067,687 |
| 5 |
644,157 |
Required:
Question: What is the NPV if the discount rate is 15.10 percent?
Note: Provide support for rationale.