Question: Scoth Corp is contemplating purchasing equipment that would increase sales revenues by $284,000 per year and cash operating expenses by $30.000 per year. The equipment

 Scoth Corp is contemplating purchasing equipment that would increase sales revenues

Scoth Corp is contemplating purchasing equipment that would increase sales revenues by $284,000 per year and cash operating expenses by $30.000 per year. The equipment would cost $60.000 and have a 5 year life with a $80.000 salvage value. The annual depreciation would be $90.000 Assuming the company's discount s on the present of the investment is close to the factors below for a los discount can be used to solve this problem Periods Present Value of $1 Present Value of an Art of $1 0.909 0909 0751 2457 0683 0621 Murple Choice 0 O $234000 0 O $20060 0 0

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