Atlas Tyres is considering purchasing an electronic tyre-balancing machine. The machine will cost $15 000, will reduce operating cash outflows by $5 000 per year for its entire 4-year useful life, and will have no residual value at the end of its life. The business' minimum acceptable rate of return is 12%.
Required:
Calculate the net present value of the investment in the machine.

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The Answer of Atlas Tyres is considering purchasing an electronic tyre-balancing machine. The machine will cost $15 000, will reduce operating cash outflows by $5 000 per year for its entire 4-year useful life, and will have no residual value at the end of its life. The business' minimum acceptable rate of return is 12%.
Required:
Calculate the net present value of the investment in the machine.

Atlas Tyres Is Considering Purchasing an Electronic Tyre-Balancing Machine