Puckett Company is proposing to spend $140,000 to purchase a machine that will provide annual cash flows of $25,000. The appropriate present value factor for 10 periods is 5.65.
Instructions
Compute the proposed investment's net present value, and indicate whether the investment should be made by Puckett Company.

Question

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The Answer of Puckett Company is proposing to spend $140,000 to purchase a machine that will provide annual cash flows of $25,000. The appropriate present value factor for 10 periods is 5.65.
Instructions
Compute the proposed investment's net present value, and indicate whether the investment should be made by Puckett Company.

Puckett Company Is Proposing to Spend $140,000 to Purchase a Machine