What is the approximate net present value for malone corp

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Malone Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $20,080. The equipment will have an initial cost of $186,260 and have a 5-year life. The salvage value of the equipment is estimated to be $21,360.

Factors to use for n = 5, I = 8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Future Value of an Annuity of $1 5.8666

Future Value of $1 1.4693

Present Value of an Annuity of $1 3.9927

Present Value of $1 0.6806

Problem 1: If the hurdle rate is 8%, what is the approximate net present value?

Reference no: EM132758021

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