Quick Fix Company is considering buying a Crypto Currency Machine to print crypto currency with the following projected investment and cash flow amounts. Machine has no salvage value.
Year Cash Flow Amounts
0 ($11,800) = Initial Investment
Year Cash Flow Amounts 0 ($11,800) = Initial Investment
1 $5,900
2 $6,900
3 $6,900
4 $5,900
5 ($14,800)
Compute the NPV for the Crypto Currency Project if the appropriate cost of capital is 6%. [Excel Formula = NPV] [Hint: NPV of Cash Flows – Initial Investment = Net Present Value]
A. $11,114.62 B. ($ 685.68) C. $ 685.68 D. ($ 11,800.00)
(Excel Formula)