(Answered) Yalken corporation is considering the purchase of a new

Finance

Yalken Corporation is considering the purchase of a new machine. The cost of the machine is $250,000. The cash flows for five years are given below.

	Year 1	Year 2	Year 3	Year 4	Year 5
Cash flows	$84,790	$102,500	$70,580	$64,760	$115,700

The company is in the 35 percent tax bracket. Assuming that the cost of capital is 12%, calculate the net present value.

$64,463
$(64,452)
$204,394
$314,452

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