Best Why Inc. is considering a new project that consists ofbuying an automatic dispenser that will have a useful life of 8years. The project's initial cost is $52644.09. The project isexpected to generate benefits of $24,000 per year for the first 4years while it will only generate 12,000 per year for the next 4years. In addition, the O&M costs of this project will be$8,000 per year for the first 3 years, $7,000 per year for the next3 years and $10,000 per year for the last 2 years. At the end ofthe 8 years, Best Why will sell the dispenser for $700. Theinterest rate for this project is 7.5%. Compute the net presentvalue of this project.
