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 25%.
A)$689,777.41
B)$300,000.00
C)$725,000.00
D)-$35,222.59
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 25%.
A)$689,777.41 
B)$300,000.00 
C)$725,000.00 
D)-$35,222.59 
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 25%.
A)$689,777.41 
B)$300,000.00 
C)$725,000.00 
D)-$35,222.59 
E)Do not have enough information to compute

Fabricating Solutions Is Looking at the Financials for a CNC