Medow inc is considering purchasing equipment cost 10000

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Medow Inc, is considering purchasing equipment cost $10,000 with a 5 year useful life. The equipment will provide cost savings of $3,100 and will be depreciated straight-line over its useful life with no salvage value. Messita requires a 10% rate of return.

Present Value of Annunity 1

Period 5

8% 4.625

9% 4.485

10% 4.350

11% 4.235

12% 4.115

13% 3.785

What is the approximate net present value of this investment?

Reference no: EM13592947

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