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What is the net present value

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Question - Grove Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $200,000. The equipment will have an initial cost of $1,200,000 and have an 8 year life. The salvage value of the equipment is estimated to be $200,000. The hurdle rate is 10%. Ignore income taxes. What is the net present value?

Reference no: EM132959860

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