Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows: The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15%, what is the expected net present value of the machine? (ignore taxes)

Question

Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows:  The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15%, what is the expected net present value of the machine? (ignore taxes)

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The Answer of Pristine Products is considering the purchase of a new machine. The estimated cost of the machine is $45,000. The machine is expected to generate annual cash inflows for the next four years as follows:  The machine is not expected to have a residual value at the end of its useful life. If the company uses a discount rate of 15%, what is the expected net present value of the machine? (ignore taxes)

Pristine Products Is Considering the Purchase of a New Machine