A company is contemplating investing in a new piece of manufacturing machinery. the amount to be invested is $210,000. the present value of the future cash flows is $225,000. the company's desired rate of return used in the present value calculations was 12%. which of the following statements is true?
I don't see a statement but if the investment was $210,000 and the future cash flows was $225,000 the net revenue would be 225,000-210,000 = 15000 and 15000/210,000=7.1% so the company's desired rate of return would not be met.
