Mystic Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for $25,000 and $10,000 (both machines are required) . The total residual value at the end of the project is $1000. The project will generate cash inflows of $11,000 per year over its 10-year life. If Mystic requires a 6% return, what is the net present value (NPV) of this project? Present Value of $1
Present Value of Annuity of $1
A) $45,960
B) $16,243
C) $15,380
D) $46,518
Correct Answer:
Verified
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