H and y service station is planning to invest in

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H and Y Service station is planning to invest in automaticcar wash equipment valued at $250000. The owner estimatesthat the equipment will increase annual net cash inflows by $46000.The equipment is expected to have a 10 year useful life with anestimated residual value of $50000. The company requires a 14 %minimum rate of return. Using the net present value method, preparean analysis to determine whether the company should purchasetheequipment. How important is the estimate of residual value to this decision? Use the tables on future value and presentvalue.

Reference no: EM13611402

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H and y service station is planning to invest in : h and y service station is planning to invest in automaticcar wash equipment valued at 250000. the owner estimatesthat
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