Question: 31. Multiple Choice Question 106 Larkspur, Inc. is considering purchasing equipment costing $72000 with a 6-year useful life. The equipment will provide annual cost savings

31. Multiple Choice Question 106 Larkspur, Inc. is considering purchasing equipment costing $72000 with a 6-year useful life. The equipment will provide annual cost savings of $18000 and will be depreciated straight-line over its useful life with no salvage value. Larkspur requires a 10% rate of return. Period 6 Present Value of an Annuity of 1 8% 9% 10% 11% 12% 4.6234.486 4.355 4.231 4.111 15% 3.784 What is the approximate net present value of this investment? b. $36000 $6390 $4157 $8748

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