New fragreance-mixing machine

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Dane Cosmetics is evaluating a new fragreance-mixing machine. The machine requires an initial investment of $56,000 and will generate after-tax cash inflows of $12,000 per year for 8 years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate wheter to accept. Pleasse use the following formula: NPV = CF(PVIFAr,t) - CFo

a. The cost of capital is 10%

b. The cost of capital is 12%

c. The cost of capital is 14%

Reference no: EM131181471

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