Calculate net present value-indicate whether to accept

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NPV analysis of a project Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $26,000 and will generate after-tax cash inflows of$4,500 per year for 8 years. If the cost of capital is 11%, calculate the net present value (NPV) and indicate whether to accept or reject the machine.

a) The NPV of the project is $__ ?(Round to the nearest? cent.)

b) Should they accept or reject the machine?

Reference no: EM131552624

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