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A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The investment would increase cash flows in the first year by $80,000 and in the
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A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The investment would increase cash flows in the first year by $80,000 and in the second year by $75,000. If the interest rate is 10% then the net present value of the investment is ________?

User Max Farsikov
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1 Answer

7 votes

Answer:

the net present value of the investment is

$15289,6

Step-by-step explanation:

VPN=INVESTMENT+SUM(FT)/(1+K)>N

VPN=150000+80000/(1+10%)++75000/(1+10%)>2

VPN=-150000+72727+61983,4

VPN=15289,6

User MattPutnam
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