Byron Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flow of $145.000 The equipment will have an in cost of $525.000, a 5-year useful life, and an estimated salvage value of $79.000 if the company's cost of capital is 12%, what is the approximate net present value? (Future Value of $1. Present Value of $1. Evture Value Annuity of $1. Present Value Annuity of St Note: Use the appropriate factors from the PV tables My Choice O O O O $224.000 $0.304) $42521 $145.000
Byron Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net cash flow of $145.000 The equipment will have an in cost of $525.000, a 5-year useful life, and an estimated salvage value of $79.000 if the company's cost of capital is 12%, what is the approximate net present value? (Future Value of $1. Present Value of $1. Evture Value Annuity of $1. Present Value Annuity of St Note: Use the appropriate factors from the PV tables My Choice O O O O $224.000 $0.304) $42521 $145.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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