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Question
Dave Company, Inc. is considering purchasing a new grinding machine with a useful life of five years. The initial outlay for the machine is $165,000. The expected cash inflows are as follows:| Year | After-tax Expected Cash Flow |
| 1 | 15,000 |
| 2 | 35,000 |
| 3 | 70,000 |
| 4 | 90,000 |
| 5 | 70,000 |
Given that the firm has a 10% required rate of return, what is the NPV?
Answer
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