A company is considering the purchase of a new machine with a initial outlay of $4500 and expected cash flows in years 1-4 of $2200 per year. The risk adjusted discount rate for the firm is 12 percent and risk free rate is 5 percent. What is the net present value of this project?
It was covered in the lectures you issed and the text books you haven't read. Just google the formula for NPV and hve a go yourself. Anyone iwth a bit of nouse and the ability to use a calculator/spreadsheet should be able to do it.