Estomation of npv, Suppose a Company is planning a purchase

Estomation of npv

Reference no: EM1360646

Assume a firm is considering a purchase of equipment for $20,000. The equipment is expected to generate net cash inflows of $6,250 for the next five years. The firm has a 10% cost of capital (required return) and is in the 34% marginal tax bracket. Calculate the NPV.

Reference no: EM1360646

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