Sneario: Amazon. Com is planning to purchase a new bar-code machine for one of it's wearhouse. Machine will cost 60,000 it has a 5 year economic life and estimated residual value of 10,000 estimated net cash flow from the machine is 16,000 the rate of return is 16%
1. What is the machines NPV
2. What is the machine payback period
3. should Amazon purchase the machine/ why or why not