A local merchant is considering the purchase of a new machine which has an initial cost of $35 000.Annual operating cash inflows are expected to be $10 000 each year for five years.No salvage value is expected at the end of the machine's life.The company's cost of capital is 14 per cent.
Required: Compute the net present value of the machine.(Ignore income taxes)

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The Answer of A local merchant is considering the purchase of a new machine which has an initial cost of $35 000.Annual operating cash inflows are expected to be $10 000 each year for five years.No salvage value is expected at the end of the machine's life.The company's cost of capital is 14 per cent.
Required: Compute the net present value of the machine.(Ignore income taxes)

A Local Merchant Is Considering the Purchase of a New