1. A new piece of equipment costs $350,000 and is expected to produce the following cash flows Year 1 2 3 4 5 6 7
1. A new piece of equipment costs $350,000 and is expected to produce the following cash flows
Year 1 2 3 4 5 6 7 8 9 10
Cash flow
($000s) 50 57 75 80 85 92 92 80 68 50
If the cost of capital is 14%, what is the NPV of the equipment? (round to the nearest whole dollar)
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Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
