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What is price that the company will pay for the equipment

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Reference no: EM132529462

Company ABC plans to invest in a long-term equipment. The equipment can last for 8 years and the annual cash inflow from it will be $100,000. The required rate of return is 6%.

Question 1: If the NPV=$10,000 for the equipment, what is the price that the company will pay for the equipment?

Option A. $611,000

Option B. $621,000

Option C. $631,000

Option D. $990,000

Reference no: EM132529462

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