Calculate the net present value of the proposed equipment

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Reference no: EM133010237

Question - The Culver Company is planning to purchase $468,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment:

Year Projected Cash Flows

1 $208,000

2 140,000

3 123,000

4 59,600

5 62,300

6 49,700

7 41,200

Total $683,800

Required - Calculate the net present value of the proposed equipment purchase. Culver uses a 11% discount rate.

Reference no: EM133010237

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