Question: If Haversham Technologies purchases $ 3 7 3 , 4 0 0 of new equipment, they can lower annual operating costs by $ 1 1

If Haversham Technologies purchases $373,400 of new equipment, they can lower annual operating costs by $117,500. The equipment will be depreciated straight-line to a zero book value over its 5-year life. Ignore bonus depreciation. At the end of the project, the equipment will be sold for $58,000. The company must invest $61,600 in Net Working Capital during the project. What is the NPV if the discount rate is 13 percent and the tax rate is 21 percent?
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 If Haversham Technologies purchases $373,400 of new equipment, they can lower

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