Birkenstock is considering an investment in a nylon-knitting machine. The machine requires ...

        Birkenstock is considering an investment in a nylon-knitting   machine. The machine requires an initial investment of $25,000, has a 5-year   life, and has no residual value at the end of the 5 years. The company’s cost   of capital is 12%. Known with less certainty are the actual after-tax cash   inflows each of the 5 years. The company has estimated expected cash inflows   for three scenarios: pessimistic, most likely, and optimistic. These expected   cash outflows are listed on the following table. Calculate the range for the   NPV given each scenario.   Expected   cash inflows    Year   Pessimistic Most likely Optimistic   1 $5,500   $8,000 $10,500    2 6.000   9,000 12,000     3 7,500   10,500 14,500    4 6,500   9,500 11,500     5 4,500   6,500 7,500