Net present value: Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,968,450, have a life of five years, and would produce the cash flows shown in the following table. What is the NPV if the discount rate is 15.9 percent?
|
Year
|
Cash Flow
|
|
1
|
$512,496
|
|
2
|
-242,637
|
|
3
|
814,558
|
|
4
|
887,225
|
|
5
|
712,642
|