Question: 22. If a net present value problem states the equipment would have a salvage value of $X, how should you treat this item in
22. If a net present value problem states the equipment "would have a salvage value of $X," how should you treat this item in your calculations? 23. A company has provided the following information for a proposed investment project: Discount rate Life of the project Initial investment cost Annual cost savings Salvage value 5% 5 years $20,000 $ 4,000 $ 2,000 What is the net present value of the proposed investment project? Show your calculations. (2 points) Page
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