Question: What is the approximate net present value? Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment

What is the approximate net present value?

Newport 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 $200,000. The equipment will have an initial cost of $900,000 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) ools Multiple Choice Negative $28,940 Positive $28.940 Zero Positive $300,000

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