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What is the net present value of the machine

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Reference no: EM132534664

Question - Chico Ltd wants to buy a new paper clip bending machine for R12 000 that is expected to generate the following cash inflows:

Year 1 R2 000

Year 2 R5 000

Year 3 R4 000

Year 4 R3 000

Required - Assuming a discount rate of 7%, what is the net present value of the machine

A. R615,55

B. R2 000,00

C. -R209,77

D. -R196,05

Reference no: EM132534664

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