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What is the net present value of this equipment investment

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Question - Guadalupe is the financial advisor for her company and is considering the purchase of excavation equipment which will cost $77,000. The purchase of this equipment is expected to save her company $10,039 at the end of every year for 8 years. At the end of the 8 years, she expects the excavation equipment to have a residual (inflow) value of $18,000. The company requires a 5% rate of return. What is the Net Present Value (NPV) of this equipment investment?

Reference no: EM133148318

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