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 $1,829,084. have a life of five years, and would produce the cash flows shown in the following table.
|
Year
|
Cash Flow
|
|
1
|
$537,147
|
|
2
|
-222,353
|
|
3
|
612,629
|
|
4
|
1,028,382
|
|
5
|
761,957
|
Required:
Question: What is the NPV if the discount rate is 12.18 percent?
Note: Please provide full description.