What is the net present value of this investment opportunity


Susan Jackson is considering buying a machine to produce silk-screened T-shirts. The following estimated data are available for her proposed project:
Cost of the machine: $16,000
Annual net cash flows generated: 5,000
Salvage value of the machine : 1,000
Useful life of the machine: 5 years
Minimum required return: 10%

what is the net present value of this investment opportunity ?

 

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Accounting Basics: What is the net present value of this investment opportunity
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