What is the net present value of the investment if the


The total initial investment (purchase, modification and investment in net operating working capital) will be $6,000.

The machine will result in operating cash flow of $2,400 per year for three years.

When the machine is sold at time period three the net sale price will be $1800. The firm will also recover the investment in net working capital of $609.

What is the net present value of the investment if the required return is 12%?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the net present value of the investment if the
Reference No:- TGS02876890

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)