What is the net present value of the machine

Reference no: EM13272013

Raindrip Corp. can purchase a new machine for $1,875,000 that will provide an annual net cash flow of $650,000 per year for five years. The machine will be sold for $120,000 after taxes at the end of year five. What is the net present value of the machine if the required rate of return is 13.5%.

A) $558,378
B) $513,859
C) $473,498
D) $447,292

Reference no: EM13272013

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