Question

In: Finance

ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash...

ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 15%. (Round your answer to the nearest $1.)

a.$4,568

b.$7,693

c.$5,061

d.None of the above.

Solutions

Expert Solution

Solution :

The NPV of the assembler if the required rate of return is 15% is = $ 5,061

Thus the Solution is Option C = $ 5,061

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


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