Natick Products is evaluating an investment in new production machinery. The initial investment is $700,000 and will yield cash flows of $120,000 per year for an 8 year period. At the end of 8 years, the machinery will be sold and has expected residual value of $90,000. Natick uses a discount rate of 6%. What is the net present value of the investment?
Present Value ofan Annuity of $1123456789105%0.9521.8592.7233.5464.3295.07d5.7866.4637.1087.7226%0.9431.8332.6733.4654.2124.9175.5826.2106.8027.3607%0.9351.8082.6243.3874.1004.7675.3895.9716.5157.0248%0.9261.7832.5773.3113.9934.6235.2065.7476.2476.7109%0.9171.7592.5313.2403.8904.4805.0335.5355.9956.41810%0.9091.7362.4873.1703.7914.3554.8685.7595.7596.145
Present Value ofan Annuity of $1123456789105%0.9520.9070.8640.8230.7840.7460.7110.6770.6450.6146%0.9430.8900.8400.7920.7470.7050.6650.6270.5920.5587%0.9350.8730.8160.7630.7130.6660.6230.5820.5440.5088%0.9260.8570.7940.7350.6810.6300.5830.5400.5000.4639%0.9170.8470.7710.7080.6500.5960.5470.500.4690.42210%0.9090.8260.7510.6830.6210.5640.5130.4670.4240.386
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