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

Management of Cullumber 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 $75,000 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

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Expert Solution

Solution :

The Net Present Value ( NPV ) of the Project is = $ 9,123

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

jeff jeffy answered 1 year ago
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