Capital Budgeting Basics, Instructor's Manual

Using a financial calculator, input the following: CF0 = -360000, CF1 = 98300, Nj = 6, and I = 14 to solve for NPV360-6 = $22,256.02 ≈ $22,256 (for 6 years). Both new machines have positive NPVs, hence the old machine should be replaced. Further, since its adjusted NPV is greater, choose Model 360-6. 10-17 a. NPV of termination after Year t: ................
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