Should new york company proceed with this purchase


New York Company is considering an investment in new equipment. The cost is $10,000 and the WACC is 12 %. The increase in net cash flow revenue is as follows: year 1 $6,500, year 2 $3,000, year 3 $3,000. Should New York Company proceed with this purchase? Calculate the NPV and the PAYBACK period to make your decision.

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Finance Basics: Should new york company proceed with this purchase
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