Solution-Considering the acquisition of equipment

Considering the acquisition of equipment

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Reference no: EM131009201

(Ignore income taxes in this problem.) Gull Inc. is considering the acquisition of equipment that costs $530,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that would be generated by the equipment are:

	Incremental net cash flows
Year 1	$137,000
Year 2	$187,000
Year 3	$148,000
Year 4	$157,000
Year 5	$147,000
Year 6	$127,000

Click here to view Exhibit 8B-1 to determine the appropriate discount factor(s) using tables.

If the discount rate is 13%, the net present value of the investment is closest to: (Round your final answer to the nearest dollar amount.)

Reference no: EM131009201

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Considering the acquisition of equipment : (Ignore income taxes in this problem.) Gull Inc. is considering the acquisition of equipment that costs $530,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that would be generated by the equipment are:

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Considering the acquisition of equipment

Reference no: EM131009201

Reference no: EM131009201

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