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Find what is the present value of the cost of the machine

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Problem 1: The purchase price of the CNC machine used in the manufacture of refrigerators is 60,000 lira, the operating cost at the end of the first year is 1,000 lira, the second year is 2,000 lira in the fourth year, and 250 lira every year for 12 years thereafter. The scrap value of the loom is 7,000 lira. The capital cost of the company is 20%. What is the present value of the cost of this machine to the company?

Reference no: EM132810155

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