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 $2,259,977. have a life of five years, and would produce the cash flows shown in the following table.
Year Cash Flow
1 $535,507
2 -265,542
3 722,187
4 700,553
5 565,624
Required:
Question: What is the NPV if the discount rate is 15.59 percent?
Note: Please show how you came up with the solution.