KAM Corp. is considering purchasing a diagnostic machine. The machine would make it possible for...
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Accounting
KAM Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do. Estimates regarding the machine are provided below.
Machine Estimates
Original Cost
$188,000
Estimated Life
8 years
Salvage Value
$0
Estimated Annual Cash Inflows
$40,200
Estimated Annual Cash Outflows
$9,860
Calculate the net present value of the machine investment. Assume a 9% discount rate.
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