Question: answer M8 CONNECT Final Exam (Ch 15-17, 20-23, 26) 0 56 Saved Help Save & Exit Newman Labs is considering buying equipment, which would enable

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M8 CONNECT Final Exam (Ch 15-17, 20-23, 26) 0 56 Saved Help Save & Exit Newman Labs is considering buying equipment, which would enable the company to obtain a five-year research contract. The specialized equipment costs $650,000 and will have no salvage value when the five-year contract pericd is over. The estimated annual operating results of the project are as follows: Revenue Expenses (including straight-line depreciation) Increase in net income All revenue from the contract and all expenses (except depreciation) will be received or paid in cash in the same period as recegnized for accounting purposes. 'What is the net present value of this investment, using a discount rate of 12%? Note: An annuity table shows that the present value of $1 received annually for five years, discounted at 12%, is 3.605 Mutiple Choice O O O O $468.650 $179150 $289,500 $829150 $ 750,000 (650,000) $ 100,000 Submit

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