Question: Question 30 (7 points) Smith Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in

Question 30 (7 points) Smith Corp. is considering the purchase of

Question 30 (7 points) Smith Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $57,000. The equipment will have an initial cost of $635,000 and have an 8- year life. The salvage value of the equipment is estimated to be $131,000. If the hurdle rate is 12%, what is the approximate net present value? Round your final answer to the nearest dollar amount. OA) $504,000 OB) $14,023 OC) $131,000 OD) Less than zero

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