In: Finance
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.
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.