JE Trim is considering investing $50,000 in a new molding planer that will have no residual value. The new equipment is expected to result in increased annual net cash inflows of $10,000 per year for the next 10 years. Assuming that JE Trim Music uses an 8% hurdle rate, what is net present value (NPV) of the investment? Is this a favourable investment?

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The Answer of JE Trim is considering investing $50,000 in a new molding planer that will have no residual value. The new equipment is expected to result in increased annual net cash inflows of $10,000 per year for the next 10 years. Assuming that JE Trim Music uses an 8% hurdle rate, what is net present value (NPV) of the investment? Is this a favourable investment?

JE Trim Is Considering Investing $50,000 in a New Molding