How much could be justified now for the purchase

Reference no: EM131968897

Question: Draw a cash flow diagram and solve for the appropriate variable using:

1) Formulas, and

2) Excel (NO Interest Table solving required). It is estimated that a certain piece of equipment for your BRG project can save VTEPS, Inc. $22,000 per year in labor and materials cost. The equipment has an expected life of five years and no market value. If VTEPS, Inc. must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment?

Reference no: EM131968897

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