Net Present Value Should the machine be purchased.
{"Image DocumentName": "Net Present Value", "Image ImageDescription": "Should the machine be purchased? Harper company must determine whether a cash investment now of  5,000 can be justified if it will result in an  1,800 reduction in cost each year over the next five years. It may appear that the answer is obvious since the total cost savings is  9,000 (5 \u00d7  1800). However, the company can earn a 20% return by investing its money elsewhere. It is not enough that the cost reductions cover just the original cost of the machine. they must also yield at least 20% return or the company would be better off investing the money elsewhere.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}