Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.

-Calculate the total net present value for the project using a discount rate of 20%.
A)$312,500.00
B)$28,291.65
C)$753,291.65
D)$725,000.00
E)Do not have enough information to compute

Question

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
 
-Calculate the total net present value for the project using a discount rate of 20%.
A)$312,500.00 
B)$28,291.65 
C)$753,291.65 
D)$725,000.00 
E)Do not have enough information to compute

Quizplus · Accepted Answer

The Answer of Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
 
-Calculate the total net present value for the project using a discount rate of 20%.
A)$312,500.00 
B)$28,291.65 
C)$753,291.65 
D)$725,000.00 
E)Do not have enough information to compute

Fabricating Solutions Is Looking at the Financials for a CNC