Sansariff Company invests in a new piece of equipment costing $40,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life:

Cash revenues $ 60,000

Cash expenses (32,000)

Depreciation expenses (straight-line) (10,000)

Income provided from equipment $ 18,000

Cost of capital 14%

What is the net present value of this investment in equipment, assuming no taxes are paid?

Answer rating: 100% (QA)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 A Year 0 1 2 3 4 NPV B Cash flows 400... View the full answer