Imagine you are going to have a project to sell a Massive Machinary you owned. You have invested THB 15,500,000 for the Machine.
This machine is expected ot have a life of 7 years.
The expected cash flow for the next seven years are as follow;
Year 1 - THB 900,000
Year 2 - THB 950,000
Year 3 - THB 1,200,000
Year 4 - THB 2,500,000
Year 5 - THB 2,500,000
Year 6 - THB 3,640,000
Year 7 - THB 5,560,000
Discount Rate is at 7% per year.
Please find the Present Value for each year and also the Net Present Value. Then, see if you should accept this project or not? Give me a solid support for your answer