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A company is considering a project with a 3-year life producing the following costs cost and revenue:
|
N$ |
|
| Cost of machine |
100 000 |
| Depreciation of machine (for 3 years) |
20 000 per annum |
| Residual value of machine |
40 000 |
| Annual cost of direct labour |
20 000 |
| Annual charge for Foreman (10% apportionment) |
5 000 |
| Annual costs of components required |
18 000 |
| Annual net revenues from machine |
80 000 |
| Cost of capital |
20% |
Calculate the net present value of the machine ?
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