Solution-Calculate the net present value of the equipment

Calculate the net present value of the equipment

Reference no: EM132598039

Question 1: ABC Company is interested in buying a piece of equipment for $150,000. The average useful life of the equipment is anticipated to be five years, with projected annual cash flow of $22,000. Calculate the net present value of the equipment at 8%. Assume no salvage value.

Question 2: The department you manage would like to buy a piece of equipment for $20,000 with projected cash flows of $4,500 per year over the eight-year useful life. Calculate the net present value at 10%. Assume no salvage value

Reference no: EM132598039

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Calculate the net present value of the equipment

Reference no: EM132598039

Reference no: EM132598039

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