Ask Experts Questions for FREE Help !
Ask
    courtcastro24's Avatar
    courtcastro24 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 23, 2013, 07:46 PM
    How to calculate the NPV
    Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another three years and then sold for its salvage value.




    Cost of old machine $109,000
    Cost of overhaul 148,000
    Annual expected revenues generated 105,000
    Annual cash operating costs after overhaul 33,000
    Salvage value of old machine in 3 years 11,000
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
    		  
    #2

    Nov 23, 2013, 07:52 PM
    Google "calculating NPV." Lots of info and examples.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Calculate Npv [ 1 Answers ]

a machine manufactring tiles costs r120 000 to install. Life expectancy of machn=20yrs,it costs r15000 to maintain p.a. Annual net income is expected to be r25 000 pa. Use a 10%pa interest rate.the bank intrests for deposits is 8.5%. What is the npv,and is this project viable?

How do you calculate NPV and PI [ 3 Answers ]

My question is find the NPV and PI of an annuity that pays $500 per year for 8 years and costs $2,500. Assume a discount rate of 6%. I'm lost! How do I even calculate this?

How do you calculate the NPV? [ 6 Answers ]

What is the NPV for a project if the cost capital is 12% and the initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 is year 2, $1,700,000 in year 3, and ($1,300,000) in year 4?

View more questions Search