Question

k company has purchased a new machine costing $27O00 and the machine is expected to reduce the operating expenses by $7000 every year. the useful life of machine is 5years and the machine is expected to have zero scrap value at end of its useful life. the company required rate of return is 12%. calculate net present value (NPV) of the machine.​

Answer 1

Answer:

495×625×16 =100×100×495=4950000