Question: 13 scoth Corp is contemplating purchasing equipment that would increase sales revenues by $312,000 per year and cash operating expenses by $90,000 per year. The

revenues by $312,000 per year and cash operating expenses by $90,000 per

13 scoth Corp is contemplating purchasing equipment that would increase sales revenues by $312,000 per year and cash operating expenses by $90,000 per year. The equipment would cost $640,000 and have a 5 year life with a $60,000 salvage value. The annual depreciation would be $110.000 Assuming the company's discount rate is 15%, the net present value of the investment is closest to the factors below for a 15% discount rate can be used to solve this problemi Periods Present Value of $1 Present Value of an Annuity of $1 0.870 1626 0.870 0756 0658 0.572 04497 2855 3352 - | | Annuity of $1 0.870 1.626 2.283 2.855 3.352 0.870 0.756 0.658 0.572 0.497 :56:42) | | Multiple Choice O s134186 o o o of O s282000 S(75504) saooo Prev 13 re to search

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