Recently it developed a new process for producing spices


Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,196,790. have a life of five years, and would produce the cash flows shown in the following table.

YearCash Flow
1 $557,801
2 -251,493
3 849,340
4 866,464
5 886,812

 

What is the NPV if the discount rate is 12.24 percent?

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Financial Econometrics: Recently it developed a new process for producing spices
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