Find what is the equipment net present value

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Reference no: EM132520221

Question 1: A piece of equipment has a cost of $25,000. The equipment will provide cost savings of $4,500 each year for ten years, after which time it will have a salvage value of $2,500. If the company's discount rate is 15%, what is the equipment's net present value? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

The options are

Option 1: -$224

Option 2: $3202

Option 3: $546

Option 4: $17,500

Reference no: EM132520221

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