The new equipment will deliver cost savings

Reference no: EM131023420

A company is considering investing in some new equipment. The new equipment will deliver cost savings of $100,000 in the first year and $130,000 in the second year, before being sold for $56,000 at the end of the second year. It will cost $230,000 to buy and install the new equipment, which will be paid on purchase.
Assuming a cost of capital equal to 11.4%, estimate the NPV of the investment in new equipment.
(Show your answer with no decimal places.)

Answer:

Optional unitUnit

Valid number formatsNumber

Reference no: EM131023420

Questions Cloud

Employment population ratio : Using the values you found in part (a), calculate the working-age population (in thousands) and the employment- population ratio. Holding all other factors constant, what would you expect to happen to the employment-population ratio if the economy ..

What leadership elements are crucial to the success : What leadership elements are crucial to the success of this problem area? State several significant areas that the problem relates to-leadership and finance, academics, and economics.

Describe four business trends and three technology trends : Name and describe four business trends and three technology trends shaping e-commerce today. What are the principal e-commerce business and revenue models? How has e-commerce transformed marketing? Explain how social networking and the "wisdom of cro..

Find the generalized eigenvectors of a nilpotent matrix : The book gives for v2= (0,0, 1)^T, and for V3, he added to use formula (A-2I)^2 v =0 to find v3 to be v3= (0,1,0)^T.

The new equipment will deliver cost savings : A company is considering investing in some new equipment. The new equipment will deliver cost savings of $100,000 in the first year and $130,000 in the second year, before being sold for $56,000 at the end of the second year.

What type of architecture does each dbms use : Determine each system's compliance with the functions that we would expect to be provided by a DBMS. What type of language does each system provide? What type of architecture does each DBMS use? Check the accessibility and extensibility of the sys..

How you will apply each type of research methodology at work : Complete a visual aid in which you compare and contrast quantitative and qualitative research methodologies. Write a 150-350 summary discussing how you will apply each type of research methodology at work?

Which type of encryption can be computed more quickly : Use an Internet browser to research symmetric encryption and asymmetric encryption. Peruse at least two Web sites for each term, then answer the following questions:

Problem regarding the mild deflation : During the late nineteenth century in the United States, many farmers borrowed heavily to buy land. During most of the period between 1870 and the mid-1890s, the United States experienced mild deflation

User Account

All Pages