Question : Question
The manager of Automated Products contemplating : 5741
The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 83914 and has a useful life of 2years. The machine will yield (year-end) cost reductions to Automated Products of $40,000 in year 1 and $50,000 in year 2 What is the (NPV) present value of the cost savings of the machine if the interest rate is 5 percent?
Round all calculation to 3 decimals
the correct answer is -467.288 but i need to know the steps. Thank You.