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Problem:

Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,548,776. have a life of five years, and would produce the cash flows shown in the following table.

YearCash Flow
1 $496,711
2 -190,858
3 822,948
4 1,036,190
5 601,256

Required:

Question: What is the NPV if the discount rate is 13.54 percent?

Note: Please show how you came up with the solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91163017

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