Find the net present value of the equipment is

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Reference no: EM132500594

Consider the following information:

Initial cost of equipment $108,000

Sales tax and delivery costs $7,000

Estimated life 7 years

Salvage value $11,000

Annual cash inflows $31,000

Estimated cost of capital 10%

Question 1: Without considering the effect of income taxes, the net present value of the equipment is:

$39,921.

$41,566.

$48,566.

$42,921.

Reference no: EM132500594

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