Math Problems



Math Problems

Question 1

Briar crest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,829,084 have a life of five years, and would produce the cash flow shown in the following table.

Year

Cash Flow

1

$537,147

2

-222,353

3

612,629

4

1,028,382

5

761,957

What is the NPV if the discount rate is 12.18 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)

NPV is

$

Question 2

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an ...