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Best Why Inc. is considering a new project that consists of buying an automatic dispenser that...

Best Why Inc. is considering a new project that consists of buying an automatic dispenser that will have a useful life of 8 years. The project's initial cost is $52644.09. The project is expected to generate benefits of $24,000 per year for the first 4 years while it will only generate 12,000 per year for the next 4 years. In addition, the O&M costs of this project will be $8,000 per year for the first 3 years, $7,000 per year for the next 3 years and $10,000 per year for the last 2 years. At the end of the 8 years, Best Why will sell the dispenser for $700. The interest rate for this project is 7.5%. Compute the net present value of this project.

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Rahul Sunny answered 5 months ago
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