Huntel Systems,Inc.is considering the purchase of a new machine that will cost the company $309,700.The machine is estimated to have a 7 year life and no salvage value.The machine is expected to generate $61,500 of net cash inflows each year over its useful life.Huntel's cost of capital is 12%.Ignoring income taxes,determine the maximum price Huntel should pay for this machine.What is the net-present-value of the investment in the machine? Should Huntel purchase the machine?

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The Answer of Huntel Systems,Inc.is considering the purchase of a new machine that will cost the company $309,700.The machine is estimated to have a 7 year life and no salvage value.The machine is expected to generate $61,500 of net cash inflows each year over its useful life.Huntel's cost of capital is 12%.Ignoring income taxes,determine the maximum price Huntel should pay for this machine.What is the net-present-value of the investment in the machine? Should Huntel purchase the machine?