Guy Wood Lumber Inc. is considering the purchase of a new lathe machine. The new lathe will cost $30 000, have an eight-year life, and create cost savings of $5 000 per year. The new lathe will require $700 of maintenance each year. Guy Wood Lumber Inc. uses a discount rate of 9 per cent. The annuity figure of 9 per cent for 8 years is 5.538
a. Compute the net cash flow per year.
b. Compute the net present value of the lathe.
c. Determine the payback period.

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ok it is ready .

maybe there were some little difference between the ways of calculating of PV,Due to floating point

ok thanks im going through it now

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