Net Present Value Method-Annuity Connor Company is considering the purchase of new equipment for $240,000. The expected life of the equipment is 10 years with no residual value. The equipment is expected to earn revenues of $152,000 per year. Total expenses, including depreciation, are expected to be $120,000 per year. Connor management has set a minimum acceptable rate of return of 6%. Assume straight-line depreciation. Determine the equal annual net cash flows from operating the equipment. Round to the nearest dollar. Present Value of an Annuity of $1 at Compound Interest Calculate the net present value of the new equipment using the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Annual net cash flow Present value of equipment cash flows Less equipment costs Net present value of equipment