Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,279,071. have a life of five years, and would produce the cash flows shown in the following table.
|
Year
|
Cash Flow
|
|
1
|
$455,814
|
|
2
|
-285,026
|
|
3
|
815,617
|
|
4
|
794,333
|
|
5
|
862,083
|
What is the NPV if the discount rate is 16.75 percent?