Question

It is desired to acquire a machine whose cost is $ 570MM, will have a useful...

It is desired to acquire a machine whose cost is $ 570MM, will have a useful life of 6 years and a salvage value of $ 370MM, it is thought that it will produce 20% increasing annual income, estimating those of the first year at $ 170MM. Find the, The operating costs of a machine are estimated at $ 87MM (the first year) and it is assumed that each year they will grow by about $ 17MM, for 6 years. Find the present value of this flow with an interest rate of 20%.

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