Phil's Fish Shack Ltd wants to purchase machinery costing $20 000. The machinery is expected to have a life of two years and a zero residual value at the end of that time. The company uses a discount rate of 10%. The net cash inflows for each year are forecast to be: Year 1 $12 000
Year 2 $16 000
What is the approximate net present value of the investment to the nearest whole dollar?

Question

Phil's Fish Shack Ltd wants to purchase machinery costing $20 000. The machinery is expected to have a life of two years and a zero residual value at the end of that time. The company uses a discount rate of 10%. The net cash inflows for each year are forecast to be: Year 1 $12 000
Year 2 $16 000
 What is the approximate net present value of the investment to the nearest whole dollar?

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The Answer of Phil's Fish Shack Ltd wants to purchase machinery costing $20 000. The machinery is expected to have a life of two years and a zero residual value at the end of that time. The company uses a discount rate of 10%. The net cash inflows for each year are forecast to be: Year 1 $12 000
Year 2 $16 000
 What is the approximate net present value of the investment to the nearest whole dollar?

Phil's Fish Shack Ltd Wants to Purchase Machinery Costing $20