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 $1,482,637. have a life of five years, and would produce the cash flows shown in the following table.
| Year | Cash Flow |
| 1 |
$500,555 |
| 2 |
-236,328 |
| 3 |
870,192 |
| 4 |
699,045 |
| 5 |
714,495 |
Required:
Question: What is the NPV if the discount rate is 15.78 percent?