What is the machines net present value

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Rayburn Industries is evaluating the investment of $142,600in a new packing machine that should provide annual cash operating inflows of $30,560for6years. At the end of6years, the packing machine will be sold for $5,200. Rayburn's required rate of return is8%.

What is the machine's net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.)

Based on net present value, should Rayburn purchase the new packing machine?

Reference no: EM131696390

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