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Management of Carla Vista Mints, a confectioner, is considering purchasing a new jelly bean-making machine at...

Management of Carla Vista Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $117,000 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?

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Expert Solution

Solution :

The NPV of the project is = $ 189,231.67

= $ 189,232 ( when rounded off to the nearest whole number )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 10 months ago
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