Hiya Every1

I need help for the following question.

A machine will cost 80000 useful life of 4 years with no redisual value.

Machine will amount upto 8000 first year increasing by 5% each year, in line with number of vehicles cleaned. Saving the labour cost will be 25000 each year

In addition to using the machine for its vechicles for the organisations revenue from the service will amount to 14000 each year. Additional direct cost of 10% of revenue will be incurred for every vechile clean on behalf of another organisation.

1) work out NPV

2)Payback period


YEAR Discount(10%)
0 1.0000
1 0.9091
2 0.8264
3 0.7513
4 0.6830

I would be greatful if you can help me with this. By the way i would just like to say you lot have done an excellent job with this site it has hepled me alot.

Thank you