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
Strategic Control
A method for monitoring the execution of an organization's strategic plans and measures taken to adjust strategies when necessary.
Innovative Units
Teams or departments within an organization dedicated to the development and implementation of new ideas or technologies.
Organic
Refers to structures and processes in organizations that are flexible and adaptable, often contrasted with more hierarchical and rigid structures.
Ambidexterity
The ability to be equally proficient in using both the right and left hands, or the capacity of an organization to innovate while also maintaining efficiency in existing operations.