Generate an annual cash flow per year

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Reference no: EM133347050

Question: The Lumber Yard factory is considering the purchase of a new piece of equipment for $76,000. The factory equipment would generate an annual cash flow of $25,000 per year for five years. At the end of five years, the equipment has no salvage value. The company's cost of capital is 12%. The present value of the annuity at 12%, n = 5 is 3.605.

Reference no: EM133347050

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