Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the
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Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $145,000. The equipment will have an initial cost of $525,000 and have a 5 year life. The salvage value of the equipment is estimated to be $79,000. If the hurdle rate is 12%, what is the approximate net present value?
$42,521
$145,000
$(2,304)
$224,000
Related Book For
Mathematical Statistics with Applications in R
ISBN: 978-0124171138
2nd edition
Authors: Chris P. Tsokos, K.M. Ramachandran
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