Florida company is considering acquiring a machine that costs $25,000. Its estimated that the machine...
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Florida company is considering acquiring a machine that costs $25,000. Its estimated that the machine will generate additional revenues of $15,000 per year for 5 years. Florida company requires a minimum of 12% on all investments. Computer the machine net present value. Should Florida company acquire the machine? Why or why not?
Reflection: where would Florida company get the data used to compute the machine net present value? The $25,000? The $15,000? The 5- years? The 12%? Put yourself in the shoes of Florida company employee charged with computing the machine net present value. There is no textbook to give you the data. What would you do?
Reflection: once you complied the data noted above and computed the net present value, you are charged with reporting your findings to the Florida company board of directors. The members are not necessarily accounting and finance aficionados. How do you explain your findings so they understand your recommendation?
Please show all work/calculations/apps inputs.
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