Project Y requires a $333,000 investment for new machinery with a five-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Annual Amounts Project Y
Sales of new product $ 350,000
Expenses Materials, labor, and overhead (except depreciation) 156,800
Depreciation—Machinery 66,600
Selling, general, and administrative expenses 25,000
Income $ 101,600
4. Determine Project Y’s net present value using 10% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)