Question regarding the briarcrest condiments


Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,968,450, have a life of five years, and would produce the cash flows shown in the following table. What is the NPV if the discount rate is 15.9 percent?

Year                    Cash Flow

1 ....................... $512,496

2 .......................$(242,637)

3 ....................... $814,558

4 ....................... $887,225

5 ....................... $712,642

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